LG Energy Solution raises stakes on AI push, targets 50% productivity gain by 2028

LG Energy Solution CEO Kim Dong-myung / Courtesy LG Energy Solution

LG Energy Solution is betting on artificial intelligence (AI) transformation (AX) to claw back ground in an increasingly lopsided global battery market, with its CEO vowing to lift companywide productivity by 50 percent by 2028.

LG Energy Solution CEO Kim Dong-myung shared an ambitious vision for the company’s AX push in a message to all employees on Monday, emphasizing that it is “a mission-critical imperative for our survival” and outlining an aggressive strategy to secure competitive advantage in the market.

Kim described the global market as a “tilted playing field,” where rivals are backed by massive government subsidies and overwhelming workforce scale.

“Responding with a simple numbers game offers little prospect of a meaningful win,” he said. “We should rewrite the rules of the game by pivoting to a model centered on core assets and talent, powered by AX.”

He identified the company’s key strengths as its extensive patent portfolio and intellectual property, nearly 30 years of accumulated industry expertise and a deep pool of skilled talent.

“If these assets combine with AX to generate synergies, it could be a prime opportunity to reshape the competitive landscape entirely.”

LG Energy Solution’s decision to raise its productivity target, from the earlier goal of a 30 percent improvement by 2030 to a 50 percent gain by 2028, reflects a judgment that the company must move faster and aim higher to seize opportunities as competitors ramp up their investment.

“AX is a complex challenge that must simultaneously address the intricacies of manufacturing, national core technology security and real-world deployment,” he said, promising strong leadership and a precisely coordinated enterprise-wide support framework.

As part of this effort, the company has launched a CEO-led AI governance committee to conduct a monthly review of the firm's AI adoption, as well as security and change management issues.

The company also plans to roll out an enterprise AI platform, starting with nonsensitive areas, expanding in phases while significantly scaling up companywide AI training programs.

“Just as a calculator doesn't replace the need to understand how arithmetic works, AI is best utilized by those who know how to define and structure problems,” he said.

“AX is not a change that makes our people less important. It is a change that frees them from inefficient busywork so they can focus on the work that actually moves the business.”