LG Energy Solution is speeding up its AI transformation (AX). As it struggles with weak earnings due to the electric vehicle chasm (temporary demand slowdown) that has continued in recent years, the strategy is to boost productivity through AX.
LG Energy Solution won the top honor, the Customer Inspiration Grand Prize, at the 2026 LG Awards held in April. The LG Awards is an event that selects and honors entities across all affiliates of LG Group that discovered products, technologies, or service achievements that innovated customer value over the year.
LG Energy Solution's Production Technology∙Cylindrical Technology∙46 Equipment team received an award for maximizing equipment efficiency and expense competitiveness by applying Digital Twin technology to production equipment for the next-generation 46 series cylindrical batteries.
Digital Twin refers to technology that implements virtual equipment identical to actual plant equipment inside a computer and verifies it through simulation. In an AI-based environment, various variables and processes can be verified in advance to quickly derive optimal production conditions, significantly saving time and expense.
LG Energy Solution applied Digital Twin technology to derive preemptive solutions such as design optimization and motor and vibration reduction design. Through this, it succeeded in improving production speed by more than 50% by accelerating new 46 series equipment.
It also sharply reduced mass-production equipment expense for the Arizona, U.S., plant scheduled to start operations at the end of this year by developing seam welding center align technology.
LG Energy Solution jointly developed a lithium price prediction AI model with LG AI Research Institute. It trained AI on data such as electric vehicle sales, mine supply, green policies, and subsidies, and conducted simulations that modeled corporations' mine shutdown/maintenance strategies according to price fluctuations. As a result, it succeeded in creating a prediction model with more than double the accuracy of figures forecast by global investment banks.
Last year, LG Energy Solution announced it would introduce an AI-based safety diagnosis system for LFP batteries for ESS (energy storage systems), the first in Korea. AI analyzes data from more than 1 million accumulated battery cells to detect fire risk factors in advance and blocks potential risks at the source by monitoring operating data in real time.
Kim Dong-myung, president of LG Energy Solution, said, "AX is not a simple digital innovation but a critical opportunity directly tied to survival and to changing the competitive landscape." Kim added, "It is meaningless to respond with simple quantitative competition. Through AX, we must change the rules of the game around core asset and talent."