LG Energy Solution (LGES) is now facing pressure from declining demand for power batteries, so it has designed a new corporate vision "Empowering Every Possibility" with the goal of going beyond simple battery manufacturing and becoming the core of a global circular energy ecosystem.
Four key mid-to-long-term strategies:
Revenue doubling: By 2028, LG Energy Solution plans to more than double its revenue and achieve mid-term double-digit EBITDA margins.Diversified business portfolio: Reduce reliance on the EV battery business by expanding non-EV businesses, including energy storage systems (ESS) and other new applications with high growth potential.Software and service business: Expand software and service businesses such as battery leasing, rental, and recycling services to establish a comprehensive Battery-as-a-Service (BaaS) ecosystem.Next-generation battery technology: Strengthen leadership in next-generation battery technologies, including lithium-free anode batteries, graphite-based anode batteries, bipolar semi-solid-state batteries, and low-cost high-power batteries.Strategic focus of business divisions:
Automotive battery business: Aim to achieve a leading position in North America and enhance competitiveness in Europe through technological innovation and region-specific strategies.Mobile & IT battery business: Maintain global market leadership, focus on mass production of 46-series batteries, and actively develop new customers such as AI data servers.Energy Storage System (ESS) business: Plan to increase revenue fivefold by 2028, aiming to become a leader in the North American market through large-scale production in the U.S. and rank among the top three in global system integration.No small pressure indeed 😄
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
