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LG chief Koo stands by EV development as key to company's growth during Indonesia trip

Published: 09 Jun. 2025, 17:46 Updated: 09 Jun. 2025, 18:42

A panoramic view of HLI Green Power, a battery cell manufacturing plant jointly established by Hyundai Motor Group and LG Energy Solution in Indonesia. [HYUNDAI MOTOR GROUP]

LG Group Chairman Koo Kwang-mo reaffirmed his commitment to developing EV batteries as the group's core growth engine during a recent visit to Indonesia, a strategically important country in both consumer demand and resource supply for the group.

Koo also emphasized the need for LG to build a differentiated competitive edge through strategic focus amid growing global trade uncertainty stemming from the Donald Trump administration's tariffs.

Koo visited Indonesia from June 2 to 4 and toured the HLI Green Power battery plant — a joint venture between LG Energy Solution and Hyundai Motor Group — in Karawang, West Java, according to LG on Monday.

The visit marked Koo’s third official overseas trip this year, following previous visits to India and the United Arab Emirates in February.

The HLI Green Power plant, located within the Karawang New Industry City, spans 79 acres and has the capacity to produce 10 gigawatt-hours of battery cells annually — enough to power approximately 150,000 EVs.

The plant entered mass production in April 2023 and achieved a production yield of over 96 percent within just four months.

Koo inspected key production stages including electrode manufacturing, cell assembly and activation. He urged teams to enhance LG’s competitive edge in battery technology, emphasizing the company’s unique capabilities. At the site, he left a handwritten message on one of the battery cells: “I hope this becomes the heart of future mobility."

This was not Koo’s first on-site battery visit. He toured LG Energy Solution’s plant in Wrocław, Poland, in 2022; the first Ultium Cells plant in Ohio, a joint venture with General Motors, that same year; a cathode materials plant in Cheongju in 2023; and another Ultium site in Tennessee in 2024.

LG Chairman Koo Kwang-mo, second from left in the front row, visits LG Electronics' Noida manufacturing plant in New Delhi, India, to observe the air conditioner production process. [LG]

During LG’s annual shareholder meeting in March, Koo emphasized his goal to grow the battery business into both a "core industry for the nation" and "the group’s flagship sector."

Koo also visited LG Electronics’ production and research and development (R&D) site in Cibitung, west of Jakarta. The facility manufactures TVs, monitors and digital signage products for the Indonesian market and exports to Asia, the Middle East and Africa. He examined the automated TV production lines and discussed global R&D strategies.

Koo also stopped by LG Electronics’ sales office in Jakarta, where he reviewed regional market trends and performance in Indonesia and other Southeast Asian countries with local executives.

“While it’s important to respond to today’s intensifying competition, we must also prepare for what will keep us alive five years from now,” he said. “Let’s focus on selective bets that can yield a unique competitive edge.”

He also stopped by Electric City, a local retail store, to examine how LG products are selling and to monitor the presence of Chinese competitors in the market.

LG Electronics CEO Cho Joo-wan visits the company’s Indonesian subsidiary, accompanied by key executives during a recent overseas business trip that also included Vietnam. The photo, uploaded to Linkedin, shows Cho at the Indonesian branch. [YONHAP]

Indonesia is one of LG’s key strategic markets. With a population of 280 million, it is Southeast Asia’s largest and the world’s fourth-largest market. The country is also the leading global producer of nickel, a key raw material for EV batteries, making it critical for both resource procurement and future consumer demand.

LG has steadily expanded its presence in Indonesia since LG Electronics entered the market in 1990. LG Innotek followed in 2000, LG CNS in 2006 and LG Energy Solution in 2021. The company now operates 10 local entities, including four production sites.

“Chairman Koo’s visit to Indonesia right after his trip to India reflects a strong commitment to finding growth opportunities not only in consumption and production, but also in R&D, in high-potential markets,” an LG official said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NA SANG-HYEON [[email protected]]