Smart factories are a new advancement.
Smart factories are a new advancement.

Despite the battery industry’s active efforts to recruit talent, it continues to face challenges with labor shortages. As a result, “smart factories,” which promise to solve these labor issues while also enhancing production efficiency, are gaining attention.

According to industry sources on March 18, the growth rate of employee numbers at leading domestic battery manufacturers last year was lower than in 2022.

Excluding SK on, which is not required to submit business reports as it is not publicly listed, the employee numbers for LG Energy Solution and Samsung SDI last year were 12,166 and 1,271 (energy business division only), respectively. LG Energy Solution saw an increase of 9.8%, while Samsung SDI’s workforce grew by 3.7% compared to the previous year.

Although both companies experienced growth in employee numbers, the rate of increase has slowed. In comparison, the year-over-year growth rates in 2022 were 15.9% for LG Energy Solution and 6.5% for Samsung SDI.

Last year, LG Energy Solution joined its peers in the domestic battery sector in offering annual salaries exceeding 100 million won. While companies are actively improving compensation to attract talent, these efforts have not led to desired outcomes due to an overall shortage of workers in the rapidly growing initial stages of the battery industry.

A battery industry expert analyzed, “The battery industry didn’t grow step by step but rather expanded drastically. As a result, there’s still a significant lack of skilled professionals in the field.”

Smart factories play a crucial role by using digitized automation technologies to enhance efficiency and reduce defects throughout the entire process, from product design and development to manufacturing and distribution. The automation of factories has advanced beyond simple automation to incorporate AI-based decision-making systems due to technological developments.

The battery manufacturing process is complex, and eliminating potential defects at each stage is difficult with human labor alone. In highly precise fields like battery manufacturing, smart factory technologies are crucial for maintaining consistent product quality, reducing production costs, and shortening time to market. In environments that demand mass production, smart factories have become an essential component.

Domestic battery manufacturers are quickly ramping up their adoption of smart factories.

LG Energy Solution plans to improve productivity and quality through smart factory foundations, reducing fixed costs and rationalizing operational expenses, including logistics and utilities. The company has previously established departments for battery and smart factory studies in collaboration with Korea University.

Samsung SDI’s R&D expenses are primarily focused on developing next-generation battery materials and constructing smart factories. The company has built an AI-based smart factory at its Cheonan site, intending to expand this approach to its global production bases.

SK on has announced plans to implement a smart factory at its under-construction Seosan Plant 3 by introducing the latest equipment and technologies. The company aims to apply the latest solutions to existing factories to enhance productivity. SK on, along with its partners, plans to examine the sophistication of core components and systems related to battery manufacturing equipment, including controllers for equipment control, smart sensors for monitoring, and communication networks and power devices.

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