LG Energy Solution ramps up partner support

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LG Energy Solution ramps up partner support

Published: 29 Mar. 2024, 15:43 Updated: 23 May. 2024, 11:09

Researchers discuss batteries at LG Energy Solution’s Daejeon research center. [LG ENERGY SOLUTION]

LG Energy Solution is enhancing the competitiveness of its partners and establishing a sustainable mutual growth system through various collaborative activities.

The company plans to further strengthen its cooperation with its partners to overcome uncertainties such as global economic downturns and solidify its position as a leading global battery company.

It has expanded the scope of its productivity improvement and quality enhancement support system from its domestic partners to overseas partners.

In addition to securing its production cost competitiveness through short-term goals, the company is also working on medium to longterm goals such as establishing a value chain based on localization and supporting the discovery of new technologies.

LG Energy Solution cuts no costs in providing financial support for mutual growth with its partners.

The Investment Funding for Mutual Growth is a fund established in 2020 that is worth 150 billion won ($111.4 million).

Through this fund, the company assists partners in taking out loans with low-interest rates.

In the case of equipment investments or operating expenses, which can impose a strain on partners, financial support proves to be of significant assistance.

LG Energy Solution makes its payments before the predetermined date before holidays, helping partner companies secure liquidity from temporary surges in fund demand.

Additionally, by implementing the Delivery Price Indexation System, the company shares the burden placed on its partner companies caused by increases in raw material prices.

LG Energy Solution is actively working to promote a culture of fair trade with its partners.

The company has taken proactive steps to establish a subcontracting review committee, conducting internal reviews to ensure compliance with laws before and after contracts are signed.

Furthermore, the company has set up an autonomous dispute resolution committee to internally resolve disputes with partner companies.

LG Energy Solution is planning to introduce various new support programs for its partners.

Among them is a system where projects jointly pursued with partners, possessing merit in both innovation and business, are recommended to credit guarantee funds.

Depending on the assessment results, partners participating in the projects will be supported to receive debt guarantees.

LG Energy Solution is also preparing extensive support for partners in areas such as education, recruitment and welfare benefits.

The company is discussing partnerships with online educational institutions to provide partner company employees with free online training courses covering legally required training such as sexual harassment prevention, business, IT, languages, culture, and leadership courses for self-improvement as well as job competency.

The company also plans to establish exclusive recruitment sections for partner companies on job search platforms to assist in recruitment efforts.

“We will establish a firm relationship of trust with our partners, expanding our mutually complementary dynamic and technological cooperation to strengthen quality, technology, and productivity innovation,” LG Energy Solution said

“By doing so, we will continue to maintain leadership in next-generation batteries while pursuing genuine mutual growth.”

BY JEONG SEONWU [[email protected]]

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