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

LG Group Chairman Koo Kwang-mo emphasized the importance of electric vehicle battery development during his recent visit to Indonesia. He toured the HLI Green Power battery plant, highlighting LG’s efforts in innovation and competitiveness amidst global trade challenges. With Indonesia’s role as a significant market and resource supplier, Koo’s visit reflects the company’s broader strategy for growth.

During a recent visit to Indonesia, LG Group Chairman Koo Kwang-mo reiterated his intention to place electric vehicle (EV) battery development at the forefront of the company’s growth strategy. This trip, which took place from June 2 to 4, is significant as Indonesia serves as a crucial hub for consumer demand and resource supply for LG.

Koo pointed out the importance of ensuring LG stays competitive amid volatile global trade conditions — particularly with ongoing tariffs initiated under the Trump administration. His focus is on creating a distinct competitive edge through strategic initiatives.

While touring the HLI Green Power battery plant in Karawang, a joint venture with Hyundai Motor Group, Koo expressed optimism in the facility’s potential. Covering 79 acres and capable of producing 10 gigawatt-hours of battery cells annually, it can reportedly power around 150,000 EVs. The facility began mass production in April 2023 and reached an impressive production yield exceeding 96% in just four months.

Koo inspected various critical production operations, including electrode manufacturing and cell assembly. He urged the battery production teams to bolster LG’s technological superiority. Leaving a personal touch, Koo wrote on one of the battery cells: “I hope this becomes the heart of future mobility.” This was Koo’s third overseas trip this year, with previous visits to India and the UAE already under his belt.

Additionally, Koo evaluated LG Electronics’ production and R&D site in Cibitung, near Jakarta. This facility specializes in manufacturing products like TVs and monitors for both local and regional markets. He took the time to observe automated TV production lines and discussed broader R&D strategies with local management to ensure competitiveness.

Koo did not overlook the sales office in Jakarta, where he explored market dynamics and performance metrics in Indonesia and neighboring 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,” Koo stated. He emphasized the need for strategic investments that could provide a unique edge in the market.

Koo’s visit to Electric City, a local retail outlet, further demonstrated his interest in understanding LG’s competitive landscape. Indonesia’s significance to LG cannot be overstated; with a population of 280 million, it is not only the largest market in Southeast Asia but also the fourth largest globally. As the top producer of nickel—the key material for EV batteries—the country is essential to both resource procurement and future consumer sales for LG.

Since establishing a presence in Indonesia in 1990, LG has expanded significantly, with various subsidiaries, including LG Energy Solution, now operating within the country. Today, the conglomerate maintains ten local entities, which include four production sites.

An LG executive commented on Koo’s visit, saying, “Chairman Koo’s trip to Indonesia right after India highlights our commitment to explore growth opportunities not just in consumption and production, but also in research and development within high-potential markets.”

In summary, Koo Kwang-mo’s visit affirmed LG’s commitment to prioritize electric vehicle battery development as a central growth strategy. With Indonesia’s pivotal role as both a market and resource hub for nickel, LG aims to strengthen its competitive position against global uncertainties. Koo’s active engagement in production and strategic planning underscores the company’s pursuit of innovative advancements in the EV sector.

Original Source: koreajoongangdaily.joins.com