[New Year's Message] LG Energy Solution's Kim Dong-myeong: "Electric Vehicle Chasm to Recover After 2026"

In October last year, CEO Kim Dong-myeong of LG Energy Solution announced the vision and mid-to-long-term strategy at the company's first vision sharing meeting. Photo by LG Energy Solution

Kim Dong-myung, President of LG Energy Solution, predicted that the business environment this year will also be challenging and that the electric vehicle chasm (temporary demand stagnation in a growing industry) will recover after next year.

On the 2nd, in his New Year's address, President Kim began by saying, "Let's make this year a 'turning point for future growth,'" and diagnosed, "Last year, in terms of performance, we went through an unprecedentedly difficult time. Although there were external factors, the main reason was that we failed to secure fundamental competitiveness to cope with changes."

He continued, "We must improve investment efficiency according to market changes and drastically improve organizational structure and cost structure," emphasizing, "This year, meaningful profit generation will be very difficult, so short-term cost reduction activities are also essential."

President Kim saw the 'Price Parity' point, where the price of electric vehicles equals that of internal combustion engine vehicles, approaching. He explained that the Price Parity point will be around 2026-2027. He said, "With the achievement of price parity between electric vehicles and internal combustion engine vehicles, and the resolution of concerns about driving range, charging, and safety, demand will gradually recover, and mid- to long-term growth will continue," adding, "This year is an important period that can be a 'turning point for future growth' for us, and we must make it a year to lay the foundation of EnSol 2.0, which aims to be 'number one in corporate value through qualitative growth.'"

He also announced plans to pursue four core tasks this year: ▲Enhancing R&D (Research and Development) competitiveness ▲achieving product and quality competitive advantages that exceed customer expectations ▲strengthening structural cost competitiveness ▲innovating future technologies and business models.

President Kim said, "LG Energy Solution has the strength of having created a history of being the 'first' and 'best' in the battery industry," and added, "Let's take one step further and climb higher together to make 2025 a great year."