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

During his Indonesia trip, LG Chairman Koo Kwang-mo stressed the importance of EV battery development and strategic focus in navigating global trade challenges. He toured the HLI Green Power battery plant, indicating LG’s commitment to innovation and growth in the region. Koo’s discussions also highlighted Indonesia’s significance within LG’s global strategy, particularly due to its market potential and resource availability.

LG Group Chairman Koo Kwang-mo reiterated his commitment to electric vehicle (EV) battery development as a central strategy for the company during a recent trip to Indonesia. From June 2 to June 4, Koo visited the country, recognizing it as a vital hub for consumer demand and resource supply related to LG’s growth trajectory.

Amid rising global trade uncertainties, especially following tariffs imposed during the Trump administration, Koo emphasized the importance of differentiation and strategic focus in maintaining competitiveness. This journey marks Koo’s third overseas trip this year, having previously visited India and the United Arab Emirates in February.

A highlight of the trip included Koo’s tour of the HLI Green Power battery plant in West Java, a joint venture between LG Energy Solution and Hyundai Motor Group. Spanning 79 acres, the facility has the potential to produce 10 gigawatt-hours of battery cells annually, enough to power around 150,000 electric vehicles. Since its mass production began in April 2023, the plant has achieved an impressive production yield exceeding 96% within just four months.

Koo inspected key production areas like electrode manufacturing and cell assembly. He stressed the need for LG to enhance its competitive advantages in battery technology, emphasizing the company’s unique expertise. At the plant, he expressed hope for its role in future mobility, leaving a handwritten message on a battery cell: “I hope this becomes the heart of future mobility.”

This recent visit is not Koo’s first to a battery facility. In previous years, he has visited various battery production sites, including those in Poland and Ohio and a cathode materials plant in Cheongju. During previous shareholder meetings, he conveyed ambitions to elevate the battery sector to a leading industry for both the nation and LG Group.

In addition to the battery plant, Koo explored LG Electronics’ production and research site in Cibitung, near Jakarta. This facility plays a crucial role in manufacturing TVs, monitors, and other products, catering to both the Indonesian and broader Asian markets. He assessed the automated TV production lines and discussed global R&D strategies with the team.

Koo also stopped by a local LG sales office in Jakarta, reviewing market trends and performance with local executives. He stated, “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. Let’s focus on selective bets that can yield a unique competitive edge.”

Moreover, Koo visited Electric City, a local retail store, to observe how LG products are positioned in the market and scrutinize the competition from Chinese brands.

Indonesia is significant for LG, as it is not only the largest market in Southeast Asia with a population of 280 million but also the world’s fourth-largest market. Furthermore, it is a leading global nickel producer, essential for EV batteries, underscoring its importance for both resource procurement and future consumer demand.

Since LG Electronics set foot in Indonesia back in 1990, the company has steadily expanded its presence. LG Innotek entered in 2000, followed by LG CNS in 2006, and LG Energy Solution in 2021. Presently, LG operates ten entities in Indonesia with four production locations.

An LG official highlighted Koo’s visit to Indonesia as a demonstration of the company’s dedication to seeking growth in high-potential markets, 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.”

Koo Kwang-mo’s visit to Indonesia underscored LG Group’s ongoing commitment to electric vehicle battery development as a primary growth engine. The trip, which included inspections of key facilities and discussions on market strategies, emphasized the importance of strategic focus in an unpredictable global environment. As Indonesia stands as a vital market for LG, particularly due to its nickel resources and large population, the company’s investments in the region show promise for future opportunities.

Original Source: koreajoongangdaily.joins.com