LG chairman stresses stronger presence in AI energy infrastructure

LG Group Chairman Koo Kwang-mo, left, looks into pouch-type battery cell for energy storage system at LG Energy Solution Vertech in Massachusetts, Monday. Courtesy of LG Group

LG Group Chairman Koo Kwang-mo called on LG affiliates to strengthen their presence in the field of energy infrastructure for artificial intelligence (AI), stressing the importance of integration between software and hardware.

Koo made such remarks during his visit to LG Energy Solution Vertech, an energy storage system (ESS) software company in Massachusetts, on Monday.

“We must secure a business foundation that remains resilient against any external uncertainties,” he said. “In particular, we need to go beyond supplying ESS battery hardware to strengthen our capabilities in high value-added integrated solutions to establish a dominant position in the market.”

The demand for future battery applications is rapidly increasing amid the expansion of AI data centers and physical AI, as ESSs are becoming critical infrastructure in high-performance computing environments in order to optimize power loads and ensure stable supply. In this environment, integrated capabilities combining hardware and software are expected to become a key competitive edge in securing market leadership.

Against this backdrop, Koo’s visit to Vertech is interpreted as LG seeking qualitative growth in its battery business to seize opportunities in the AI energy infrastructure market, with a focus on integrated solutions.

LG Energy Solution is responding to market demand by introducing lithium iron phosphate batteries for its ESS products, while transitioning its five North American production bases including ones in Michigan, Tennessee and Ontario to focus on ESS. It is currently the only company producing and supplying ESS batteries in North America.

Vertech is also creating synergies with LG Energy Solution. The company has system integration capabilities covering key aspects of the ESS business, including design, installation, maintenance and software-based operation management.

After visiting Vertech, Koo traveled to Brazil to visit LG Electronics’ production base in Manaus, where he discussed local strategies with employees.

Brazil accounts for approximately 40 percent of the combined gross domestic product of Central and South America, making it a key market in LG Electronics’ strategy in developing countries.

LG Electronics’ new refrigerator plant under construction in Parana, southern Brazil, is set to begin operations in July this year. The facility will serve as a strategic base to strengthen the company’s presence in Latin America by overcoming high import regulations and tariff barriers.