Kim Dong-myeong, LG Energy Solution CEO, "Abandon No.1 Arrogance and Revive Innovation DNA"

LG Energy Solution Urges Employees to Embrace Challenge and Innovation
"Structural Cost Competitiveness Lacking, Profitability Declining"

Kim Dong-myung, CEO of LG Energy Solution, urged, "Let us abandon arrogance and revive the DNA of challenge and innovation with a humble attitude."

In a message to employees on the 4th marking the second half of the year, CEO Kim said, "To achieve the goal of becoming number one in corporate value through qualitative growth, we must not only develop the grit and stamina to prepare for the future but also abandon arrogance and revive our unique DNA of challenge and innovation."

Kim Dong-myeong, CEO of LG Energy Solution (Provided by LG Energy Solution)

Diagnosing that the battery industry environment is rapidly changing, he said, "The market's perspective on the battery industry has changed significantly due to the electric vehicle chasm (temporary demand stagnation), and even companies recognized as 'the best' in industries outside of batteries are facing great difficulties because they failed to secure competitiveness in time according to the direction and speed of change." He added, "Although we have secured market leadership through aggressive business expansion and established differentiated global production capabilities compared to competitors, the innovation in materials, technology, and processes that were our past strengths has slowed down, and structural cost competitiveness is lacking, resulting in declining profitability despite sales growth, which is the harsh reality."

He continued, "We must be cautious not to blame all difficulties on the tough business environment or to blindly optimistically view the future just because growth prospects are bright. We must soberly reflect on whether the confidence of being number one, established by leading innovation in the battery field in the past, has turned into arrogance."

Furthermore, CEO Kim emphasized focusing on 'fundamental (basic strength) reinforcement.' He said, "It is true that many inefficiencies have occurred in areas such as manpower, facilities, and procurement while aggressively pursuing orders and business expansion until now. This happened because we pioneered the market ahead of others, but we must not repeat the same mistakes. We need to turn failure experiences into assets and combine them with accumulated operational capabilities to elevate them into differentiated competitiveness."

He also stated, "Now is the time to adjust the pace of investment. It is important to secure agility that allows appropriate investments at the necessary times, and I ask each organization to deeply consider ways to increase investment flexibility and efficiency."

Regarding the announcement on the 2nd of the supply contract for Ampere, Renault's electric vehicle division, and pouch LFP batteries for electric vehicles, CEO Kim evaluated, "This is an encouraging achievement during difficult times, and we must build on such successful experiences one by one."

LG Energy Solution has agreed to supply approximately 39GWh of LFP (Lithium Iron Phosphate) batteries for electric vehicles to Renault over five years starting from the end of 2025. This marks the first large-scale order of vehicle LFP batteries by a domestic battery company. CEO Kim stated, "This is a case where LG Energy Solution's unique product competitiveness and differentiated customer value were recognized."

He said, "The future of the battery industry is bright, but it has become much more difficult than before to acquire the true capabilities to lead the future. We must not be trapped by past glories but comprehensively reorganize the business and product portfolio and accelerate innovation throughout the entire organization. I will do my best with a lower and more humble attitude. Let us unite our strength once again," he urged.