LG Chief Koo Stands by EV Development as Key to Company’s Growth During Indonesia Trip

LG Group Chairman Koo Kwang-mo reaffirmed his commitment to electric vehicle battery development during his recent visit to Indonesia. He emphasized the importance of building a competitive edge amid global trade uncertainties. Koo visited the HLI Green Power battery plant and engaged with local operations, showcasing LG’s strategic focus on the growing EV market.

During a recent visit to Indonesia, LG Group Chairman Koo Kwang-mo reiterated the vital role that electric vehicle (EV) battery development plays in the company’s growth strategy. Indonesia, being a significant player in both consumer demand and resource availability, is seen as a key market by LG. Koo’s emphasis on developing a distinctive competitive advantage comes amid ongoing global trade tensions, particularly those resulting from tariffs set by the Donald Trump administration.

Koo visited Indonesia from June 2 to June 4, where he toured the HLI Green Power battery plant, which is a joint project involving LG Energy Solution and Hyundai Motor Group in Karawang, West Java. This marks Koo’s third overseas trip this year, following stops in India and the United Arab Emirates. The HLI Green Power facility is quite impressive, spanning 79 acres and boasting the ability to produce up to 10 gigawatt-hours of battery cells annually—enough to power around 150,000 electric vehicles each year. The plant began mass production in April 2023 and already achieved a production yield surpassing 96% in just four months.

Inspecting various production stages like electrode manufacturing and cell assembly, Koo encouraged teams to focus on enhancing LG’s position in battery technology. He left a handwritten note on a battery cell stating, “I hope this becomes the heart of future mobility,” underscoring his vision. This site visit isn’t Koo’s first; he previously toured LG Energy Solution’s facilities in Poland, Ohio, Cheongju, and Tennessee in recent years.

In March, Koo had stated at LG’s annual shareholder meeting that he aims to elevate the battery sector to a “core industry for the nation” and transform it into the company’s flagship business. He also took the time to visit LG Electronics’ R&D and production facility located in Cibitung, just west of Jakarta. At that site, he checked out the automated TV production lines and engaged in discussions regarding global R&D strategies.

Koo’s itinerary included a stop at LG Electronics’ sales office in Jakarta, where he reviewed market performance across Indonesia and nearby Southeast Asian nations. “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 remarked. He urged the team to concentrate on selective initiatives that could give LG a unique edge in the marketplace.

The chairman also visited Electric City, a local retail outlet, to assess LG product sales and examine the competition posed by Chinese manufacturers. Indonesia stands as a crucial market for LG; it’s Southeast Asia’s biggest nation with a population of 280 million and ranks as the world’s fourth-largest market. Being the leading global producer of nickel—essential for EV batteries—Indonesia is key for resource procurement and future consumer demand.

LG Group has been expanding its footprint in Indonesia since LG Electronics first entered the market in 1990. LG Innotek followed in 2000 and LG CNS in 2006, with LG Energy Solution establishing operations in 2021. Currently, LG runs ten local business entities, including four production sites.

An LG representative commented on Koo’s journey, stating, “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,” highlighting the emphasis on both immediate and future successes.

In summary, LG Group Chairman Koo Kwang-mo’s recent trip to Indonesia underscores the company’s strategy of anchoring its future on electric vehicle battery development. The visit was more than just a routine inspection; it highlighted LG’s search for innovation and competitive advantage in a rapidly changing market landscape exacerbated by global trade issues. Positioning itself in Indonesia, a key resource supplier and consumer market, reflects LG’s long-term vision for growth in critical sectors.

Original Source: koreajoongangdaily.joins.com