LG Energy Solution's Kim Dong-myeong: "Battery Market Recovery Expected Only by 2026"

Met with reporters at the 1-Day Battery Industry Day event

On the 1st, Kim Dong-myeong, President of LG Energy Solution, met with reporters and answered questions at the '4th Battery Industry Day' event held at the Chosun Palace Hotel in Gangnam-gu, Seoul. Photo by LG Energy Solution

Kim Dong-myung, President of LG Energy Solution, predicted that the battery industry’s market rebound will occur after the year 2026.

At the '4th Battery Industry Day' event held on the 1st at the Chosun Palace Hotel in Gangnam-gu, Seoul, Kim (also Chairman of the Korea Battery Industry Association) told reporters, "It is difficult to definitively say when the market will rebound, but I believe it will be challenging until next year. We expect a rebound around the year after next. Regarding overcoming the chasm (temporary demand stagnation in a growth industry), securing demand is the most important, and we will work hard to achieve that."

Regarding turning a profit excluding the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA), he briefly replied, "It will come soon." LG Energy Solution achieved sales of KRW 6.8778 trillion and an operating profit of KRW 448.3 billion in the third quarter of this year, marking a 129.5% increase in operating profit compared to the previous quarter. However, operating profit excluding AMPC still recorded a loss of KRW 17.7 billion.

On next year’s investment reduction, Kim said, "Rather than reducing investment, we are adjusting the pace," adding, "We are planning to improve operational efficiency by rebalancing (restructuring) areas where proactive investments were made."

Regarding the U.S. presidential election results, he stated, under the premise of it being his "personal opinion," "I believe there will be little change in subsidies for producers. There may be changes in tax credits for consumers, and we are preparing for and will respond well to those scenarios."

On cooperation with India’s JSW, he responded, "We are looking at markets that will grow besides North America, Europe, and China, and one of those will be the Indian market. We are discussing various measures."

Meanwhile, at the Battery Industry Day event, Kim Dong-myung, CEO of LG Energy Solution, was awarded the Gold Tower Industrial Medal for his contributions to the development of the battery industry.