LG Group has set a goal to achieve substantial results and generate revenue in the space industry by 2030. In line with the rapid growth of the space industry, the group plans to consolidate its capabilities at the group level to secure future growth momentum.
LG is driving its space business centered around LG Science Park, the group's research and development (R&D) hub. LG Science Park leads cooperation among affiliates and maximizes synergy effects. It brings together core competencies such as parts from LG Electronics, materials from LG Chem, batteries from LG Energy Solution, and camera modules from LG Innotek.
LG also plans to establish specialized organizations dedicated to space technology within individual affiliates, aiming to systematize and advance its space business.
The move into the space sector by LG is attributed to the slowdown in growth of its main businesses, home appliances and chemicals. Strategic decisions were influenced by the need to explore sustainable future growth opportunities amidst stagnant demand for home appliances and high volatility in the chemical industry.
The space industry offers diverse business opportunities such as satellite communication, space data centers, edge computing satellites, and lunar exploration probes.
The space environment, with extreme temperature changes, vacuum, and intense radiation, requires components and materials that differ from those used on Earth. Ensuring the reliability and safety of components is a top priority due to the unique characteristics of the space environment. Leveraging its accumulated technological expertise in home appliances, chemicals, and communications, LG is well-positioned to capture a favorable position in the emerging space market.
LG sees the battery sector as the largest business opportunity in space. In the global battery market, Chinese companies such as CATL and BYD are increasing market share by leveraging their competitive pricing. However, for space batteries where safety is crucial, quality is the key competitive edge. LG Energy Solution is reportedly in discussions with global space companies including SpaceX based on its technological advantage.
LG is advancing technology refinement through on-site verification. Last year, in collaboration with Moon Exploration Rover R&D startup, the unmanned exploration research institute, LG Innotek cameras were mounted on the Nuriho 4th launch to verify performance in actual space environments. For the Nuriho 5th and 6th launches this year and next year, LG Electronics and LG Energy Solution plan to increase the number of verified components. As a result, LG is considering launching its own CubeSat in 2028.
LG aims to preempt the space new business through pre-technological preparation and expand Earth-based technologies to space.
The global space industry is expected to continue its rapid growth. According to the World Economic Forum (WEF), the global space market is projected to grow nearly threefold from $630 billion (approximately 965 trillion won) in 2023 to $1.8 trillion (approximately 2,760 trillion won) in 2035.