LG Chem has dominated the electrical car battery market supplying electrical car batteries to global car manufactures including GM, Ford, Reno, and Hyundai-Kia motors
LG Chem is planning to take control of the electrical car battery (Lithium ion secondary cell) industry. The company is also planning to earn approximately 900 billion won this year, after seeing sales of 300 billion won in the second half of last year. LG Chem is striving to expand its already extensive domestic and oversea production lines, as well as improve its public image and protect its technical skills.
The company will develop the battery business as the heart of LG Group, with its future strategic engine based on a triangle formation of Koo Bon-moo, LG Group Chairman, Kim Ban-suk, LG Group Vice Chairman, and Kwon Young-soo, Director of the battery business.
Manufacturing Capability Increased Five Fold
LG Chem is planning to increase its electrical car battery production from last year’s 100,000 to 200,000 this year, and to 350,000 by 2013, and 500,000 by 2015.
The company also plans to invest 430 billion won into electrical car batteries this year; 70% of its total investments. Estimated battery sales stand at 800 to 900 billion won this year, up from 33 billion won in 2011.
The goal of LG Chem is to occupy more than 25% of the global electrical car battery market, and to attain sales of 4 trillion won by 2015 based on guaranteed supplies to more than ten global vehicle companies such as GM, Ford, Reno, and Hyundai-Kia motors.
Although LG Chem’s sales goal was 2 trillion won at the beginning, it was raised to 3 trillion won. Moreover, as additional customers were secured, this was raised to 4 trillion won.
However, LG Chem refuses to be satisfied, focusing its efforts on laboratory-based R&D for next generation batteries in order to stay ahead.
LG Chem received a “high quality electrical car battery development project” worth US$10 million from the US Advanced Battery Consortium (USABC) last July. Eventually, the company will take charge of high quality, large-output lithium ion batteries to be installed in next generation plug-in electrical cars.
“Getting Stronger” as LG’s Major Future Business
Last December, a notable change in personnel among LG group’s CEOs was the appointment of Kwon, Young-soo, former CEO of LG display, to Director of LG Chem’s battery business
President Kwon took over the battery business after combining small, medium, and large-sized battery businesses following a shake-up in personnel and organization.
In the near future, President Kwon will concentrate on developing the battery business by forming a direct connection with Chairman Koo. Chairman Koo appointed Kwon because he had remarkable success when President of LGLCD.
The company’s secondary cell business is currently a global leader, and a major business for the LG Group. This comes just two decades after Chairman Koo, Bon-moo brought a sample from the UK for research.
LG Chem manufactured the world’s first high quality lithium ion battery for laptops in 2005 after producing the nation’s first lithium ion battery on a large-scale in 1998. It became a world-leader after securing long-term electrical car battery supply contracts with 10 world-famous car manufacturers including GM, Ford, Reno, and Volvo.
Last April, the company established a large car battery factory in Ochang City, whilst construction of an electrical car battery factory in Holland, Michigan, the birthplace of the car, continues, with commercial production expected to begin in March 2012
LG Chem is also planning to provide batteries to 350,000 electrical cars, a four-fold increase from this year’s production of 100,000, by investing 2 trillion won by 2013. Furthermore, it plans to provide electrical car batteries in order to occupy more than 25% of its markets by 2015.