LG Energy Solution launches, aims for ￦30 trillion sales by 2024
LG’s new rechargeable battery unit LG Energy Solution officially launched Tuesday with an ambitious sales target of 30 trillion won ($27 billion) by 2024 from an estimated 13 trillion won this year.
It also vowed to expand its electric vehicle (EV) battery production capacity to 260 gigawatt-hours in 2023 from 120 gigawatt-hours this year.
The spinoff from LG Chem appointed Kim Jong-hyun, formerly the president of LG Chem's battery unit since 2018, as chief executive in an inaugural meeting on Tuesday.
Kim is credited with pushing LG Chem to become the world’s leading EV battery producer after starting his career at LG Household and Health Care in 1984.
He also played a critical role in attracting orders from prominent automobile manufacturers such as Audi and Daimler.
“LG Energy Solution pioneered the battery industry that was hitherto nonexistent in Korea,” Kim said in a statement.
“To pursue a bigger dream, we decided to separate the battery business,” he said.
Alongside the expansion of production capacity, LG Chem says the new company may push to go public.
The battery maker also cited the development of next-generation rechargeable batteries such as solid-state or lithium-sulfur-based batteries as a priority.
The new unit employs 22,000 workers at home and abroad — 7,000 in Korea and 15,000 overseas — with its production and research and development sites in the United States, China, Poland and Germany as well as Ochang in North Chungcheong and Daejeon in Korea.
LG Chem CEO Shin Hak-cheol will become chair of the board at LG Energy Solution.
BY PARK EUN-JEE [email@example.com]