LG Energy Solution diversifies business portfolios
T7X all-electric construction equipment made by Doosan Bobcat, which signed a memorandum of understanding with LG Energy Solution (LGES) / Courtesy of LGES
LG Energy Solution (LGES) said Thursday it is exploring new businesses with high growth potential as part of efforts to respond to slowing global demand for electric vehicles (EVs).
Last month, the battery maker announced a joint venture with Derichebourg, a leading French company in the metal waste recycling sector.
The two will dismantle and shred end-of-life EV batteries in France and battery scraps from LGES' Polish factory to extract black mass. This material will undergo post-processing to recover key battery components such as lithium, nickel and cobalt, which will be reused in LGES' battery production.
The Korean company said the partnership will help it comply with Europe's battery recycling regulations, secure raw materials and boost customer value.
In March, LGES signed a memorandum of understanding with Doosan Bobcat to supply cylindrical batteries for electric construction equipment. The two also plan to jointly develop standard battery packs for a range of heavy machinery, targeting the North American market.
Aptera's solar-powered electric vehicle which will use LG Energy Solution's (LGES) batteries / Courtesy of LGES
At the CES 2025 trade show in Las Vegas in January, LGES announced it would exclusively supply cylindrical batteries to Aptera Motors, a U.S. startup that makes solar-powered EVs. LGES will supply 4.4 gigawatt-hours of cylindrical batteries from 2025 to 2031, contributing to the production of the new type of EVs.
In November, LGES partnered with Bear Robotics to provide battery cells for autonomous robots. The partnership also aims to strengthen their foothold in the global robotics market, which is expected to grow rapidly in the coming years.
"With the diversified business portfolios, we will cut our reliance on the EV market and create a solid business structure," an LGES official said.
The company also plans to supply batteries for ships and urban air mobility in line with its corporate vision announced last year: "Empower Every Possibility." Mass production of its 46-series cylindrical batteries is scheduled to begin in 2026 at its Arizona factory to meet client demand. (Advertorial)