LG Energy Solution presents new comprehensive battery strategy
LG Energy Solution plans to double its revenue by 2028, and states that it will build on four key medium- to long-term strategies to do so. For starters, the LG Chem subsidiary wants to balance its business portfolio by expanding Non-EV businesses, as well as diversifying product and customer portfolios to expand its reach. Furthermore, LG Energy Solution will establish a foundation for software and service businesses, as well as a more generic “Strengthening leadership in next-generation battery technology.”
This announcement marks the first official strategic outlook by the company since it was established in 2020. While the company has been supplying more than just EV batteries since its establishment, the diversification will not only extend to the applications of the batteries: “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,” LG writes in a press release. LG ES will also diversify the applications of its batteries, however, announcing that it will look into applications with a high-market potential, including “Urban Air Mobility (UAM), vessels, and robotics.”
In terms of the software and service businesses, “the company will offer various services including battery leasing, rental, and recycling to establish a comprehensive Battery-as-a-Service (BaaS) ecosystem.” In addition, the Energy-as-a-Service business model is to be evolved to contribute more to energy stabilization and the circular energy economy.
For its planned leadership efforts, LG ES writes that it will “focus all efforts on securing leadership in next-generation battery technologies to bring more innovation to the sector.” The company eventually plans to lead the market in solid-state batteries by “producing anodeless products that exclude lithium anodes, and ‘graphite-based’ anode products.” This is to be achieved by 2028 “through securing the largest market share in the U.S. ESS battery market.”
“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.”
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