Kim Dong-myung, CEO and president of LG Energy Solution, said he will make the new year the first year of a real shift to results centered on energy storage systems (ESS) and cost innovation. The strategy is to seize ESS growth opportunities even as the electric vehicle market undergoes an adjustment phase and to strengthen structural competitiveness through AI transformation (AX).
In a New Year's address released on the 5th, Kim Dong-myung said, "Over the five years since launch, we have strengthened not only top-line growth but also the fundamentals and competitiveness of the business," adding, "2026 must be the starting point when our efforts translate into business results."
LG Energy Solution plans to accelerate the shift to ESS in North America, Europe, and China to boost both supply stability and operating efficiency, while strengthening solution competitiveness through SI and SW differentiation. He said, "Demand for ESS is expanding rapidly," calling it "a critical opportunity that will determine the success or failure of our portfolio rebalancing."
Kim also cited product competitiveness and cost innovation as core tasks. The strategy is to focus on winnable product lines such as 46 series cylindrical batteries for electric vehicles, mid-nickel pouches for hybrids, and prismatic lithium iron phosphate (LFP) for ESS, while pursuing structural cost improvements based on materials and supplies and process innovation, raw material investments, and recycling.
The research and development (R&D) direction will also be realigned around Winning Tech. The company will concentrate resources on technologies directly tied to business outcomes, such as dry electrodes, high-nickel 46 cylindrical, and hybrid mid-nickel technologies, and will steadily push to secure ESS energy management optimization (EMO) and next-generation all-solid-state battery technology.
Kim defined the AX transition as a matter of survival. The plan is to apply AI to three key areas—product development, materials development, and manufacturing operations—to improve productivity by more than 30% by 2030. He said, "AI/DX is not a choice but a must, reducing repetitive tasks and inefficiencies and allowing us to focus on real business impact."
Finally, he said, "2026 is the starting point of a new five years," adding, "Let's break down boundaries between departments, move as one team, and prove the value customers feel with results."