LG ramps up a robotics stack aimed at the U.S. market

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LG ramps up a robotics stack aimed at the U.S. market

Published: 21 Nov. 2025, 07:00

LEE JAE-LIM
[email protected]

Audio report: written by reporters, read by AI

LG Group Chairman Koo Kwang-mo, left, inspects Figure AI's humanoid robot at the company's headquarters in the California in June 2024. [LG]

[NEWS ANALYSIS]

LG Group — once defined globally by its consumer electronics, displays, components and batteries — is now leveraging those same core strengths to position itself as a major supplier in the fast-rising humanoid robotics industry, aiming for future supply deals in the United States.

The conglomerate has been expanding investments in its robotics portfolio in recent years, betting that physical AI represents a new growth engine where early suppliers can scale quickly. Goldman Sachs predicts a bullish outlook of $38 billion for the humanoid robotics market, with global robot shipments projected to reach 1.38 million units in 2035.

LG Electronics CEO William Cho highlighted robotics as one of LG's core technologies and labeled the sector "a certain future" to reporters at a press conference held on the sidelines of CES 2025 in Las Vegas in January.

Following this momentum, foreign investors have been actively buying LG Group stocks in November. LG CNS, the group's information technology service arm, topped net purchases at 158 billion won ($107.6 million), followed by LG Chem, its chemicals and materials flagship, at 121 billion won, while LG Innotek, its electronics components manufacturer, came in at 84 billion won and battery maker LG Energy Solution raked in 83 billion won as of Nov. 19, according to Korea Exchange data.

Eyes of humanoids
One of its most high-profile bets is on Figure AI, a U.S. robotics startup developing general-purpose humanoid robots for both household use and industrial sites. Investors in the February 2024 Series B round included LG, Microsoft, OpenAI, Nvidia and Jeff Bezos, the founder of Amazon. In September the next year, LG Technology Ventures, LG’s venture capital arm, joined the $1 billion Series C round that pushed Figure AI’s valuation to an estimated $39.5 billion. LG's total investment amount is undisclosed.

Industry observers widely expect LG’s investment to translate into a supply relationship. LG Innotek, which already provides camera modules for premium iPhone models, is increasingly seen as the likely supplier of the “eyes” for Figure’s humanoid lineup. Anticipation of such a deal comes amid similar supply deal speculation by several Korean reports that LG Innotek may become a supplier for Tesla's Optimus robot, as U.S. companies seek non-Chinese component suppliers due to the risk of data leakage and national security sensitivities.

Camera modules, which enable robots and autonomous systems to recognize and respond to their surroundings, are considered high-security components, making Korean companies like LG Innotek particularly attractive partners.

Kim Dong-won, an analyst at KB Securities, says the affiliate's next major growth driver lies in the humanoid robot sector — a market accelerating not just technologically but geopolitically.

“Sales of cameras for humanoid robots will surge more than tenfold from 5.1 billion won this year to 54 billion won next year,” Kim said. “Prospects for LG Innotek are especially bright as U.S. companies are likely to seek Korean suppliers amid rising security concerns in the U.S.–China AI power struggle.”

Vertical integration through Bear Robotics
LG strengthened its vertical integration in robotics after securing management control of Bear Robotics in May, exercising a call option that raised its stake to 61.1 percent. The move is intended to accelerate collaboration between LG affiliates’ hardware capabilities and Bear Robotics’ software expertise.

Founded in 2017 in Silicon Valley, Bear Robotics is considered an early mover in commercial and industrial autonomous mobile robots. The kind of robots are designed to perform repetitive delivery tasks, and its flagship lineups for Servi, restaurant server bots, and Carti brand, a larger, open cart-style robot for carrying heavy items.

LG CNS has partnered with Bear Robotics to expand into warehouse and logistics robotics. In May, the LG affiliate showcased its self-developed warehouse automation lineups at ProMat 2025, the world’s largest logistics automation exhibition, signaling a push into the global market.

LG CNS has also established an AI & Robotics Research & Development Center in Silicon Valley, planning to focus on developing software that serves as a robot’s brain. This includes developing robot foundation models, generating training data for robots and enhancing robot simulation capabilities including serving as a testbed for further collaboration with Bear Robotics.

LG Energy Solution also signed a memorandum of understanding with Bear Robotics last year on battery supply. Under the agreement, LG Energy Solution will exclusively supply cylindrical batteries for Bear Robotics’ service and industrial robot models. A major synergy of the partnership will be the development of a Battery-as-a-Service platform, including a battery-swapping and charging system and an energy-management solution for autonomous robots. This will enable optimized charging schedules and ensure stable, round-the-clock robot operation.

BY LEE JAE-LIM [[email protected]]