Kim Dong-myung, CEO of LG Energy Solution, said he is confident the slump in demand for electric-vehicle batteries can be offset by energy storage systems (ESS). In particular, Kim said annual production capacity (CAPA) for ESS batteries could increase from what was released previously.
Kim met with the press just before attending the 5th Battery Industry Day, hosted by the Korea Battery Industry Association (KIBA) in Gangnam District, Seoul, on the 30th, and said, "Demand for (vehicle) batteries is uncertain due to various circumstances, so we are focusing on the North American ESS market," adding, "The business policy next year will be the same."
Regarding global annual ESS production capacity, he said, "It could increase from what was released at the earnings conference call," adding, "Because we also have plants in Poland and China." This is interpreted to mean that, in addition to the standalone plant in Holland, Michigan, which began mass production of LFP batteries for ESS in June, the Poland and China plants can also be converted for ESS. LG Energy Solution operates EV battery plants in Wroclaw, Poland, and Nanjing, China.
Earlier, at the third-quarter earnings conference call held that day, LG Energy Solution said it would convert additional EV battery factory lines and expand ESS production capacity to 30 gigawatt-hours (GWh) by the end of next year. Lee Chang-sil, executive vice president and chief financial officer (CFO) of LG Energy Solution, said on the call, "We plan to convert some of the production lines at joint-venture plants with automakers to ESS," hinting that the joint-venture plant with Stellantis in Ontario, Canada, could be converted to ESS.
Regarding foreign media reports that General Motors (GM) will suspend operations at Ultium Cells, the joint-venture plant with LG Energy Solution, from Jan. 5 next year to adjust EV production capacity, Kim said, "This is a matter to be decided by the Ultium Cells board of directors, and we are seeking to proceed well through discussions with (GM)."
Regarding the conclusion of the South Korea–U.S. tariff negotiations the previous day, he said, "It is not bad news," adding, "I believe we will be able to maintain competitiveness."