Brain Drain in Battery Industry

An increasing number of South Korean battery engineers are moving abroad from multiple South Korean companies like LG Chem.
An increasing number of South Korean battery engineers are moving abroad from multiple South Korean companies like LG Chem.

 

It has been found that the battery business unit of LG Chem increased the number of its staff members only by 34 last year, about one tenth the annual increase of approximately 400 from 2013 to 2016.

This contrasts with the 429 new employees hired by the Energy Solution Division of Samsung SDI last year. The battery business unit of SK Innovation also increased its workforce during the same period, although the company did not disclose it.

In fact, rumors about a brain drain from LG Chem have circulated since last year. The battery business unit of the company is recruiting new staff members on an ongoing basis, but its workforce is increasing only in its overseas plants, not in the main office in South Korea that is in charge of developing key technologies.

Industry insiders point out that LG Chem’s battery business could be negatively affected if the company faces difficulty recruiting new engineers at a time when it is aggressively expanding its battery business. Currently, the company produces batteries in Ochang, South Korea, Nanjing, China and Michigan, the U.S. In addition, its manufacturing facilities in Wrocław, Poland were put into operation last month. The average capacity utilization of those facilities rose from 59.5% in 2016 to 67% last year as demand for electric vehicle batteries increased.

They also point out that an increasing number of South Korean battery engineers are moving abroad from South Korean companies, including LG Chem. “It is estimated that about 150 South Korean battery engineers left the country for higher salaries and incentives in 2017 alone,” one industry watcher said.

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