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 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 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 a 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.”
LG Energy Solution presented its five-year goals to more than double its revenue compared to 2023 (33.7 trillion won), and achieve mid-10 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.
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