Dive Brief:
- Battery supplier LG Energy Solution announced its mid- to long-term business strategy with the goal of positioning itself as a leader in the global circular energy storage ecosystem, the company announced on Oct. 7.
- The plans, which are being shared for the first time since the company was established in 2020, include advancing next-generation battery technology for automakers, such as high-nickel, lithium iron phosphate and lithium manganese iron phosphate battery chemistries.
- Over the next five years, LG Energy Solution’s goal is to more than double its revenue compared to 2023, which was 33.7 trillion won ($26.2 billion), as well as achieve a mid-teen percent profit margin from its expanded energy storage portfolio.
Dive Insight:
Expanding its battery product offerings will lessen LG’s dependence on the EV segment and raise its resiliency to potential market fluctuations, according to the release. This includes manufacturing batteries for other applications outside of automotive, such as urban air mobility, ships and robotics.
By 2026, LG’s Advanced Automotive Battery division will focus on overcoming the temporary slowdown of the EV market by improving efficiencies across its global production facilities.
The plans also include LG establishing a software and services business for energy storage systems. The company aims for a five-fold increase in revenue from the new unit by 2028, while securing the “largest market share in the U.S.” The company plans to start production of battery cells for energy storage systems in North America in 2025.
“Our vision encapsulates the ultimate goal of LG Energy Solution to enable sustainable growth,” said David Kim, CEO of LG Energy Solution, in the release. “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.”
Although LG Energy Solution plans to expand its energy storage portfolio, it remains focused on innovating for automotive customers. The company says it will develop anodeless solid-state batteries that will eliminate the need for lithium or graphite-based anodes. In addition, LG plans to accelerate the mass production of semi-solid batteries and batteries using more low-cost sulfur and sodium battery chemistries.
These new battery designs will help LG reduce costs, increase battery energy density and maximize production output. It includes using a dry electrode manufacturing process for batteries.
The company also aims to expand its cylindrical battery cell portfolio, leveraging its 46-series cell format and new designs tailored to meet the specific needs of automakers. LG also plans to introduce new high-voltage mid-nickel pouch cell and dry electrode lithium iron phosphate batteries by 2028.
“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 Kim in the release.
LG’s mid- to long-term growth roadmap for its automotive battery division includes securing the top supplier position in North America by 2030, as well as expanding its presence in Europe.
