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| LG Energy Solution's manufacturing plant in Ochang, North Chungcheong Province. Courtesy of LG Energy Solution |
By Lee Kyung-min
LG Energy Solution (LGES), the battery manufacturing affiliate of LG Group, said it will invest 600 billion won ($448 million) to fortify production capabilities at its Ochang Energy Plant 2, as part of its medium-term growth strategy to elevate the manufacturing facility in North Chungcheong Province to a global technology hub with what it refers to as "mother line production" by 2026, according to market watchers, Tuesday.
The term "mother line" refers to when next-generation products are tested and verified for mass production, in addition to pilot production before commercialization.
The Ochang plant will become the mother factory of the affiliate's large-capacity manufacturing plants in North America, Europe and Asia, as underpinned by its committed investments into research and development, according to the firm.
The fortified mass-production capabilities will help with more effective responses to the varying needs of consumers, due in large part to a shortened production period and enhanced productivity overall.
Pouch batteries
The LG affiliate plans to verify mass production of long-cell pouch battery cells before December 2024, to enable their production at manufacturing plants all around the world. A pouch battery is a soft battery design where most of the cell components are enclosed in an aluminum-coated plastic film. Only two tabs stick out, each afflixed to current collectors within the pouch.
The importance of manufacturing leadership is being increasingly highlighted, the battery affiliate said, prompted by consumer demand for fast production of high-quality electric vehicles (EVs).
"We will strengthen our competitiveness, defined by quality, cost and the on-time delivery of our products," an LGES official said.
Currently, the LG affiliate is building a factory monitoring control center (FMCC) at its Ochang plant. The center is operated by a deep-learning system based on artificial intelligence (AI) technology and the visual data of the affiliate's production facilities around the world.
The Ochang plant has a smart factory system that enables remote control of its facility operations as well as automated logistics management, among other tech support.
The firm said it will strengthen education and training programs at its LG Institute of Battery Tech (IBT), the world's first battery education institution set up to foster next-generation battery experts.
LGES Vice Chairman Kwon Young-soo said that the Ochang plant will function as the control tower of the firm's global operations.
"The Ochang plant will be where the newest technologies will be tested and verified for commercialization, with the central facility propelling the growth of LGES," he said. "We will continue making investments to become the top player, trusted and loved by customers."
Its operating profit in the first quarter came to 633.2 billion won, up 144.6 percent from the year before. Sales in the same period registered an all-time high of 8.74 trillion won, up 101.4 percent from a year earlier.
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