LG Energy Solution CEO: Strategic US expansion to offset trade challenges
Kim Dong-myung, CEO of LG Energy Solution and chairman of the Korea Battery Industry Association, stated Wednesday that the company is well-positioned to benefit from its extensive US production facilities, despite the tariff threats from President Donald Trump.
'The tariff policies of the new US administration fundamentally encourage domestic production,' Kim said during a press briefing at the InterBattery 2025 exhibition in Gangnam, Seoul. 'We intend to capitalize on our US factories effectively to align with this initiative.'
LG Energy Solution operates eight battery manufacturing facilities, including joint ventures with global automakers — the largest number among its Korean competitors. In comparison, SK On operates six and Samsung SDI runs three plants, either independently or in collaboration with other companies.
However, Kim remained cautious when asked about the possibility of tariffs on electric vehicle batteries under Trump's administration, stating, 'We will have to wait and see, just as he (Trump) has said.'
Regarding earnings projections for the first quarter of 2025, Kim said, 'We cautiously predict that the first quarter or first half of the year may be our lowest point, with gradual improvements expected in the second half. However, given market volatility, we need to remain vigilant. As stated earlier this year, we will maintain our strategy of pursuing efficient investments.'
He added that LG Energy Solution is preparing for potential market stabilization and a rebound in EV demand following the current slowdown in the industry.
When asked about the growing dominance of Chinese battery manufacturers, Kim emphasized, 'LG Energy Solution takes pride in having shaped the battery industry, as evidenced by our extensive portfolio of battery-related intellectual properties. We have also proven our capabilities in global operations.'
He highlighted that LG Energy Solution will leverage its next-generation technologies, including 46-series cylindrical batteries, lithium iron phosphate batteries, mid-nickel batteries, sodium batteries and cell-to-pack technologies.
Chinese battery giants CATL and BYD continue to expand their market share, primarily through cost-efficient LFP batteries. According to market tracker SNE Research, CATL held a 37.9 percent market share in 2024, followed by BYD at 17.2 percent, securing the top two positions globally.
In line with LG Group's strategic expansion into India, Kim noted that LG Energy Solution is actively exploring emerging markets, including India, to further diversify its customer base.
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