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LG Energy Solution aims to double revenue by 2028
LG Energy Solution (LGES) CEO Kim Dong-myung introduces the company's corporate vision to employees at LG Science Park in Seoul, Monday. Courtesy of LGES
By Park Jae-hyuk
Battery maker to reduce reliance on EV industry
LG Energy Solution (LGES) plans to reduce its dependence on the struggling electric vehicle (EV) industry, aiming to double its revenues by 2028. The company reported a revenue of 33.7 trillion won ($25 billion) in 2023.
The battery maker also aims to achieve an approximately 15 percent EBITDA margin by 2028, without relying on tax credits in compliance with the U.S. Inflation Reduction Act, to secure stable profitability and cash generation capabilities. EBITDA stands for earnings before interest, taxes, depreciation and amortization.
These medium- to long-term strategies were announced during an event to introduce the company’s first-ever corporate vision, titled Empower Every Possibility.
The new vision underscores that the essence of the company’s business lies not merely in battery production, but in facilitating energy circulation across the entire cycle from storage to movement of energy, according to LGES.
The battery firm said that it will focus more on energy storage systems (ESS), as well as new application businesses with high growth potential such as urban air mobility, vessels and robotics, to construct a more resilient business structure that can withstand market fluctuations.
The company also plans to diversify its EV battery products and customers by improving its competitiveness in affordable markets with LFP, LMFP and high-voltage mid-nickel batteries.
Additionally, it aims for the top spot in the global mobility and IT battery market and in the U.S. ESS battery market by 2028, solidifying its lead in the North American automotive battery market.
“Based on our DNA of success, which continually embraces opportunities to achieve remarkable results, we will generate more business prospects while strengthening our technological leadership to thrive in the market,” LGES CEO Kim Dong-myung said.
“We have established global standards in the battery industry with our longstanding legacy in the business and will continue to maintain our industry lead.”