- Company to expand into 'circular energy business,' going
beyond battery manufacturing
- LG Energy Solution plans to stand at the center of the entire
circular energy ecosystem, unlocking limitless business
opportunities
- The company aims to lead market as a comprehensive energy
solution provider, leveraging its accumulated technological prowess
and capabilities
- Four key mid-to-long-term strategies announced, aiming to
more than double the revenue by 2028
- Building a balanced business portfolio by expanding Non-EV
businesses
- Diversifying product and customer portfolios
- Establishing a foundation for software and service
businesses
- Strengthening leadership in next-generation battery
technology
SEOUL,
South Korea, Oct. 7, 2024
/PRNewswire/ -- LG Energy Solution has announced its corporate
vision of "Empower Every Possibility" with the aim of transcending
the battery manufacturing sector and positioning itself at the
heart of the global circular energy ecosystem. This marks the first
time LG Energy Solution has introduced a corporate vision since its
establishment at the end of 2020.
The new vision underscores that the essence of LG Energy
Solution's business lies not merely in battery production, but in
facilitating the energy circulation across the entire cycle from
storage to movement of energy. The company intends to become the
center of this energy ecosystem, unlocking limitless business
opportunities.
The company also aims to lead the market as a comprehensive
energy solution provider by continuously evolving its business
structure, including expanding beyond hardware to software and
services business while building a more sustainable energy
ecosystem.
"Our vision encapsulates the ultimate goal of LG Energy Solution
to enable sustainable growth," said David
Kim, CEO of LG Energy Solution. "The meaning of this vision
is to expand our business with energy that awakens all potential
powers, thereby enabling the company and its members to realize
infinite growth potential."
He added, "Based on LG Energy Solution's DNA of success, which
continually embraces opportunities to achieve remarkable results,
we will generate more business prospects while strengthening our
technological leadership to thrive in the market."
- Eyes set on doubling the revenue by 2028, the company
outlines four mid-to-long-term strategies
LG Energy Solution presented its five-year goals to more than
double the revenue compared to 2023 (KRW
33.7 trillion), and achieve mid-teen percent EBITDA margin
(excluding the IRA tax credit) by 2028 to secure stable
profitability and cash generation capabilities.
Aligned with these goals, the company also outlined four
mid-to-long-term strategies: building a balanced business portfolio
by expanding non-EV businesses; diversifying the EV product and
customer portfolios; securing a business foundation in software and
services; and strengthening next-generation battery technology
leadership.
First, the company will seek to secure a balanced business
portfolio by actively expanding its non-EV businesses. The company
plans to reduce dependence on the EV battery business and continue
to increase the Energy Storage System (ESS) business in its
portfolio. Furthermore, the company will put more efforts into new
application businesses with high growth potential, such as Urban
Air Mobility (UAM), vessels, and robotics to construct a more
resilient business structure that can withstand market
fluctuations.
Second, LG Energy Solution will diversify its EV products and
customers. Beyond premium batteries centered on high-nickel
chemistry, the company will improve its competitiveness in
affordable markets through its LFP, LMFP, and high-voltage
mid-nickel products. Additionally, the company plans to expand its
cylindrical battery customer portfolio to include traditional
automakers leveraging its 46-series, and will actively consider
developing other new form factors tailored to customer needs.
Third, the company aims to establish a solid revenue structure
with the expansion of its software and service businesses. In
addition to its industry-leading Battery Management Systems (BMS),
the company will offer various services including battery leasing,
rental, and recycling to establish a comprehensive
Battery-as-a-Service (BaaS) ecosystem. Furthermore, it will evolve
its Energy-as-a-Service (EaaS) business model to contribute more to
energy stabilization and the circular energy economy.
Finally, LG Energy Solution will focus all efforts on securing
leadership in next-generation battery technologies to bring more
innovation to the sector. Regarding solid-state batteries, the
company plans to lead the market by producing anodeless products
that exclude lithium anodes, and 'graphite-based' anode products.
The company also plans to accelerate the mass production of
'bipolar' semi-solid batteries and low-cost high-power batteries
applying sulfur and sodium. Furthermore, leveraging its outstanding
dry electrode manufacturing process, the company will rapidly
enhance its overall competitiveness in cost, energy density, and
production yield.
- Each business division shares key strategies to gain upper
hands in future markets
Following the announcement of its vision, LG Energy Solution
presented detailed mid-to-long-term market strategies for its core
Advanced Automotive Battery, Mobility & IT Battery, and Energy
Storage Systems (ESS) Battery businesses.
For the Advanced Automotive Battery division, the company
unveiled a growth roadmap with the mid-to-long-term goal of
securing the top position in North
America and reinforcing its foothold in Europe by enhancing its fundamental strengths.
By 2026, the division will focus on overcoming the temporary
slowdown of the EV market by improving the operational efficiency
of its global production facilities. By 2028, it intends to
solidify competitive edge in materials and processes with
high-voltage mid-nickel pouch products and dry electrode LFP
products. By 2030, the division has set an objective of securing a
leading position in the EV battery market through overwhelming
technological prowess and strategies tailored to specific regions
and customers.
The mobility & IT battery division aims to cement its
current position as the No. 1 in the global market and further
widen its lead by 2028. To this end, the division will prioritize
the successful mass production of its 46-series that is optimized
for mobility environments, securing competitiveness across various
EV models. Additionally, it will actively pursue new customer
acquisition in high-power products such as power tools, vacuum
cleaners, and battery backup units (BBUs), as well as in AI data
servers. Furthermore, the division plans to enhance cost
competitiveness by securing new technologies and processes, and
achieve logistical advantages through the strategic expansion of
its global production sites.
For the ESS business, the division targets a five-fold increase
in revenue by 2028 through securing the largest market share in the
U.S. ESS battery market. It also aims to become among the top three
global system integrators (SI). In the near term, the division will
pursue a leading position in the North American market through the
full-scale production of ESS cells in the U.S., which is set to
start in 2025, advanced SI capabilities through LG Energy Solution
Vertech, and new products with higher energy capacity and longer
duration. In the long term, LG Energy Solution plans to proactively
respond to the rapidly changing market and secure high-margin
opportunities by developing next-generation products and
strengthening its power trading business.
- Pursuing four core values of growth, challenge, action, and
collaboration to achieve its vision
In order to achieve its vision and four mid-to-long-term
strategies, LG Energy will actively pursue four core values: Power
of Growth; Power of Challenge; Power of Action; and Power of
Collaboration.
These core values emphasize the need to continuously strive for
growth, challenge seemingly impossible goals, execute on set
objectives, and work together to achieve common aims.
To this end, LG Energy Solution plans to foster a corporate
culture of execution, where employees are encouraged to challenge
themselves with new perspectives and approaches so that they can
diligently pursue their goals once a direction is set. The company
also highlighted the importance of collaboration among its
workforce of 35,000 employees with diverse nationalities,
backgrounds, and experiences to create differentiated value.
"We have established global standards in the battery industry
with our longstanding legacy in the business and will continue to
maintain our industry leader status," said David Kim, CEO of LG Energy Solution. "I am
confident that if we support each other as pace-setters and join
hands, our long journey will lead us to even more wonderful
landscapes and futures."
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a
leading global manufacturer of lithium-ion batteries for electric
vehicles, mobility, IT, and energy storage systems. With 30 years
of experience in revolutionary battery technology and extensive
research and development (R&D), the company is the top
battery-related patent holder in the world with over 58,000
patents. Its robust global network, which spans North
America, Europe, and Asia, includes battery manufacturing
facilities established through joint ventures with major
automakers. Committed to building sustainable battery ecosystem, LG
Energy Solution aims to achieve carbon neutrality across its value
chain by 2050, while embodying the value of shared growth and
promoting diverse and inclusive corporate culture. To learn more
about LG Energy Solution's ideas and innovations, visit
https://news.lgensol.com.
View original
content:https://www.prnewswire.com/news-releases/empower-every-possibility-lg-energy-solution-unveils-corporate-vision-announces-mid-to-long-term-business-strategies-302268539.html
SOURCE LG Energy Solution