November 30, 2024

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LG Energy Solution’s Ochang plant in North Chungcheong Province (LG Energy Solution)

South Korea’s top electric vehicle battery maker LG Energy Solution has elevated its sales target for this year, largely buoyed by an upbeat outlook for the second half.

In its second-quarter earnings report in July, the company announced an upgraded growth plan, raising sales target this year to 22 trillion won ($16.8 billion), an almost 10 percent jump from the previous target of 19.2 trillion won.

The company offered a rosy outlook for the coming months, citing new car launches by its automotive partners, the operation of its first joint venture plant with General Motors and an increase in battery prices due to rising raw materials.

The company had high hopes especially for the North American market, the fastest-growing EV market globally.

Currently, LG Energy Solution is the only battery maker to have secured supply deals with GM, Ford and Stellantis, the three biggest carmakers in North America.

So far, the company has invested 15 trillion won in building three battery plants in the US with annual production capacity of some 40 to 50 gigawatt-hours each, and one in Canada with an annual production capacity of 45 gigawatt-hours.

By 2025, its production capacity in the region is expected to reach 215 gigawatt-hours -- enough to power an annual 2.5 million EVs.

The company also plans to expand its production network globally. Adding to its planned expansion of European facilities, the company aims to ink more partnership deals in Asia as well.

The company said it is also investing heavily in research and development. Its workforce surged to 9,564 from 7,524 over the past months, with most of them being researchers.

“With our advanced technology, stable value chain establishment and reliable quality, we plan to solidify our position as a global leader in profitability as well,” said LG Energy Solution Chief Financial Officer Lee Chang-sil.

By Hong Yoo (yoohong@heraldcorp.com)