LG Chem, SDI vow 'tech leadership'

By Kim Yoo-chul

LG Chem and Samsung SDI, the country’s two major vehicle battery makers, pledged Friday to strengthen their technologies to dissipate concerns that the growing popularity of shale gas may deal a severe blow to the electric vehicle (EV) industry.

In a new year's message, LG Chem Vice Chairman and CEO Park Jin-soo said the world's biggest battery supplier for EVs has set "market leader" as this year's corporate catchphrase.

To that extent, the company plans to boost its spending on raw materials and patents.

"The battery business is one of our new growth engines that we can't afford to lose. I see a lot of external challenges this year such as signs of economic difficulties in Europe, the rise of Japanese competitors thanks to the weakening yen and huge volatility in financial industries in emerging countries,” Park said.

"Without developing market-leading technologies, we would get into big trouble," he told employees.

Park said LG Chem, which supplies car batteries to more than 30 global carmakers, will listen to its clients to provide customized products.

"I want you to find out which criteria that our customers want and then present the right ideas for greater satisfaction. You need to improve your communication skills and share ideas with business divisions for better collaboration," Park said.

With shale gas changing the energy industry landscape in the United States, there are concerns that incentives by governments and companies for EVs will be reduced, dealing a blow to leading battery suppliers.

Samsung

Samsung SDI CEO Cho Nam-seong understands that shale gas will have some impact on the Group's battery affiliate.

However, Cho said in his new year's message that SDI will upgrade its battery-making technologies and strengthen its client profile this year to differentiate itself as a trusted supplier in terms of output commitment, pricing and on-time delivery.

"By securing patents in batteries and in business areas that we've identified as new growth engines, Samsung SDI will rise as the global leader. This is not an option but a must we should accomplish," Cho said.

"Maintaining technology leadership is important for us, as our main revenue comes from components. Without technology leadership, you can't be No. 1," the Samsung executive said.