LG Group Chairman Inspects Battery Plant in Indonesia, Focuses on EV Transition

LG Group Chairman Koo Kwang-mo visited Indonesia to inspect battery manufacturing operations in light of a slowdown in global electric vehicle demand. He toured the Hyundai LG Indonesia Green Power facility and emphasized the importance of competitive differentiation and cooperation. The visit also included discussions with local executives about market trends and regional growth opportunities in Southeast Asia.

In a recent visit to Indonesia, LG Group Chairman Koo Kwang-mo has taken stock of the group’s battery production and research initiatives, indicating a strong commitment to bolstering competitiveness in light of a temporary dip in global electric vehicle (EV) demand. This trip, reported on June 9, reflects LG’s strategic focus on maintaining leadership in battery technology amidst evolving market conditions.

Koo inspected the manufacturing facilities of Hyundai LG Indonesia Green Power, situated close to Jakarta. This joint venture between LG Energy Solution and Hyundai Motor Group is noteworthy for being Indonesia’s first dedicated EV battery cell plant, designed to operate on a sprawling 320,000 square meters with an impressive annual output capacity of 10 gigawatt-hours. It stands as a crucial component of LG’s international battery production system.

During his inspections, Koo stressed the importance for employees to cultivate unique competitive advantages for LG’s battery solutions compared to global competitors. He highlighted the necessity for tight cooperation with partners to navigate the current downturn in global EV demand growth.

Moreover, Koo’s tour extended to the LG Electronics production and research site in Cibitung, West Java, where a variety of products, including TVs and monitors, are assembled. The establishment of a local research unit adjacent to this plant in 2023 signifies LG Electronics’ intent to create a cohesive framework that integrates research, production, and market activities aimed at capturing opportunities within Southeast Asia.

At the Jakarta sales office, Koo convened with local leaders to deliberate on customer preferences, market distribution patterns, and competitive trends within the Southeast Asian region. LG has recognized the potential in what is termed the Global South, comprising regions such as India, Indonesia, Latin America, the Middle East, and Africa, all seen as ripe for economic development.

With initiatives in play, LG aims to leverage the growth in these emerging markets to enhance its presence and adaptability in a dynamic global landscape.

Chairman Koo Kwang-mo’s recent visit to Indonesia highlights LG Group’s proactive approach to adapt and strengthen its manufacturing and R&D efforts in battery production. This comes at a time when the global EV market faces uncertainties, and LG’s commitment to collaboration and competition underscores its strategy to thrive in emerging markets. The visit also marks a significant step in furthering LG’s expansion in Southeast Asia, aiming for continued growth amid evolving economic dynamics.

Original Source: en.yna.co.kr