LG Energy Solution on the 20th held its sixth annual general meeting of shareholders at LG Twin Towers in Yeouido, Seoul, with President Kim Dong-myung and key executives, shareholders, and institutional investors in attendance.
Kim told shareholders that LG Energy Solution's core execution strategies are to advance the business portfolio, strengthen product and future competitiveness, and secure a foundation for generating free cash flow (Free Cash Flow). In particular, Kim said that as part of the business portfolio strategy, "we plan to expand the share of energy storage systems (ESS) and new businesses from about the current 20% to the mid-40% range to build a stable and balanced business structure."
LG Energy Solution judged that the global ESS market has entered a "structural growth" phase this year and set a new order target for this year that exceeds last year's record of 90 gigawatt-hours (GWh), the all-time high. In the ESS business, LG Energy Solution plans to accelerate growth by establishing local production bases and leveraging its North American operating experience and system integration (SI)-based turn-key solution competitiveness. It also plans to nearly double its global ESS battery production capacity to more than 60 GWh by the end of this year. A significant portion of the capacity will be concentrated in North America, where the steepest growth is expected.
In the electric vehicle business, the company will strengthen product diversity by expanding mid- to low-priced lineups and introducing new form factors. Kim said, "The long-term demand growth trend in the EV market remains intact," and projected, "As next-generation EV models go into full-scale mass production from 2029 to 2030, EV demand will begin a full-fledged recovery in the period when they deliver differentiated value."
Kim also presented a strategy to strengthen product and future competitiveness. First, LG Energy Solution plans to simultaneously enhance performance and price competitiveness around key product lines such as prismatic ESS lithium iron phosphate (LFP) and LMR batteries for EVs, cylindrical high-nickel 46 series, and pouch-type high-voltage mid-nickel batteries.
The company will also continue to push next-generation battery technology development. LG Energy Solution is preparing for the commercialization of solid-state batteries and is proceeding as planned with the development of dry electrode processes. Sodium-ion batteries are also undergoing technology verification with customers.
Kim said, "We will deliver differentiated competitiveness not only in EVs and ESS but also in new businesses such as humanoids," adding, "By combining software solutions, we will enhance safety and operational efficiency and provide end-to-end value that takes responsibility even for after-sales service."
Regarding securing a foundation for generating free cash flow, Kim said, "We are shifting our investment direction from scale expansion to efficiency," adding, "Capital expenditures (capex) peaked in 2024 and have entered a downward trend, and we will continue to operate focusing on essential investments."
Meanwhile, at the general meeting of shareholders that day, all agenda items, including approval of financial statements, amendments to the articles of incorporation, appointment of directors and Audit Committee members, and approval of the limit on directors' remuneration, were passed as originally proposed. The articles were partially revised to reflect amendments to the Commercial Act, including the introduction of an electronic general meeting of shareholders system and changing the title of independent directors.