LG Chem revamps biz portfolio for enhanced customer experience

LG Chem Vice Chairman Shin Hak-cheol speaks during a meeting with U.S. Treasury Secretary Janet Yellen (not pictured) at LG Science Park in Seoul, July 19, 2022. Courtesy of LG Chem

LG Chem has been overhauling its business portfolio to focus on three key pillars of growth: eco-friendly sustainability, battery-based e-mobility and renovating its global business sector.

The company's new strategy aims to differentiate customer experiences, while uncovering new growth opportunities, according to the nation’s largest chemical company.

Also, it has set its sights on achieving annual sales of 70 trillion won ($50.5 billion) by 2030, with the target being independent of the sales figures for its subsidiary, LG Energy Solution.

“LG Chem's sales have grown 10-fold over the past 20 years by diversifying its business portfolio from batteries to bioengineering,” LG Chem Vice Chairman Shin Hak-cheol said in a press release.

“The answer has always been within our customers and their needs. By offering differentiated customer experiences, we aim to become a top global science company, regardless of the rapid changes in the geopolitical landscape.”

To establish a growth engine for the future, LG Chem will invest more than 4 trillion won in capital expenditure starting this year. It invested 3.4 trillion won last year.

Thanks to the firm’s unrelenting investment for the future, the company’s future growth-related sales are expected to reach 40 trillion won by 2030, a sixfold increase from its 2022 figure of 6.6 trillion won.

To achieve its target sales of 70 trillion won by 2030, LG Chem plans to become a major battery supplier, aiming for 30 trillion won in battery-related sales by that year.

Separated from its market leader position in cathode materials, LG Chem will invest heavily in separating membranes and carbon nanotubes for batteries as well as strengthening its R&D capacity in pure silicon electrodes and all-solid-state battery electrolytes.

It is also set to increase its annual battery production capacity to 470,000 tons by 2028, up from its current capacity of approximately 140,000 tons.

Last December, LG Chem started building a cathode production plant in Tennessee to meet its 2028 target. Once completed, the annual production of the U.S. plant is expected to reach 60,000 tons.

LG Chem also stressed its commitment to strengthening its leadership position in low carbon-related businesses by accelerating its recycling, biodegradation and reusable energy sectors. Posting 1.9 trillion won sales in 2022, the company aims to ink 8 trillion won in the low-carbon business sector by 2030. (Advertorial)