LG Energy Solution held its 6th regular shareholders' meeting at the LG Twin Tower in Seoul on the morning of the 20th, attended by CEO Kim Dong-myeong, key executives, shareholders, and institutional investors.
CEO Kim stated, "We are now in a time of 'Value Shift,' where the growth value of the industry is being redefined," and emphasized that the company will create substantial results without wavering with its prepared capabilities and execution.
Kim diagnosed that the global Energy Storage System (ESS) market has entered a phase of structural growth due to changes in power demand structure, and predicted that growth opportunities will be concentrated on a few companies with local production and supply chain requirements.
LG Energy Solution is converting electric vehicle (EV) facilities to ESS in North America to secure a non-China lithium iron phosphate (LFP) supply chain, and is also responding with local production utilizing idle assets in Europe. The company has set a new order goal for this year to exceed 90 gigawatt-hours (GWh).
The company plans to expand its ESS battery production capacity to over 60GWh by the end of this year, nearly doubling it, with a focus on North America.
The CEO expects that performance and price competitiveness in the EV market will be key factors for demand recovery in the future, and anticipates a full rebound around 2029-2030 when mass production of next-generation models begins. The company plans to expand its business portfolio by increasing the proportion of ESS and new businesses from the current 20% to around 40% in the future.
After the shareholders' meeting, Kim met with reporters to further explain the battery industry's current status and response strategies.
He emphasized, "We are in a transitional phase where the weight is shifting from growth centered on EVs to demand centered on ESS," and stressed the importance of capturing and connecting market demands and changes quickly to results.
The company is also expanding cooperation with major global customers. Kim mentioned, "We have maintained a long-term cooperative relationship with Tesla and are expanding cooperation not only in the EV field but also in the ESS sector."
Regarding regional production strategies, Kim revealed that they are considering converting ESS production in Europe. He stated, "Discussions are underway for line conversion to respond to local ESS demand, including at the Poland factory," and added that the project is progressing significantly even though it is difficult to specify the scale.
He also mentioned, "The Arizona plant in the United States is currently under construction with the goal of starting operations by the end of this year."
Cooperation with finished car companies is also proceeding smoothly.
Kim stated, "Cooperation with Honda is progressing as announced, with no issues in the relationship," and added, "Although it is difficult to specify the exact order size, we are continuing to achieve meaningful results."