[Interview] Kwon Young-soo "Preparing for Smart Factory Brings Opportunity for K-Battery Leap in 2030"

Former LG Energy Solution Vice Chairman
"Prepare for 'Smart Factories' Integrated with Artificial Intelligence"
"China is a Clear Threat... If You Can't Win, Avoid"

"Korean batteries will have another opportunity to leap forward in 2030. We just need to clearly prepare by doing what must be done now, such as introducing smart factories led by artificial intelligence (AI)."

Former Vice Chairman Kwon Young-soo, who led LG Energy Solution, the nation's top battery company, predicted the revival of 'K-battery' in five years. While Chinese companies leveraging low-cost LFP (Lithium Iron Phosphate) batteries clearly threaten the three domestic battery firms, he emphasized that if AI based on data is actively adopted, they can seize the advantage when demand surges.

Kwon Young-soo, former Vice Chairman of LG Energy Solution, is being interviewed by Asia Economy. 2025.02.25 Photo by Yoon Dong-joo

Former Vice Chairman Kwon served as CEO and Vice Chairman of LG Energy Solution for three years starting in 2021. He elevated LG Energy Solution to the top domestic position through fierce competition in the global market.

Recently, the battery industry has fallen into a slump. Unlike the past when a rapid shift from internal combustion vehicles to electric vehicles was expected, the so-called chasm of 'temporary demand stagnation' is prolonging. Former Vice Chairman Kwon said, "The battery industry has only passed the introduction phase," adding, "There may be some growing pains for a few years as it moves into the growth phase."

He predicts the battery revival will occur in five years. He said, "The transition to electric vehicles is an inevitable path," and added, "Not only electric vehicles but also the energy storage system (ESS) market is growing, so although there are difficulties now, there will be a rebound by 2030." He stressed the importance of building capabilities until the opportunity arrives.

Former Vice Chairman Kwon said that to prepare for the battery revival, AI must be a matter of life and death. He particularly emphasized that only by building 'smart factories' where AI is deeply involved in the production process can K-battery companies survive.

The emphasis on smart factories stems from the sensitive nature of batteries. In advanced industries where yield is critical, introducing AI-driven production processes is inevitable to reduce defects. He said, "In the battery industry, product development is important, but it is also necessary to devise various ways to reduce defects," adding, "Applying AI to all production processes and establishing a precise production system is the way to become the winner."

Kwon Young-soo, former Vice Chairman of LG Energy Solution, is being interviewed by Asia Economy. 2025.02.25 Photo by Yoon Dong-joo

Data supports smart factories. He stressed the importance of data to the extent of saying, "Equipment speaks through data." His view is that if the data accumulated so far is utilized in the production process, equipment failures can be predicted and preemptive measures taken to enable continuous product manufacturing.

The level of smart factory advancement he aims for is even higher than that of Siemens' Amberg plant in Germany, which is ranked number one worldwide. Siemens uses AI for optimized decision-making, but he insists it must go beyond that to enable fully autonomous operation. He explained, "If smart factories are activated, there will be no need for people to work in the factory," and "The production system should be operated solely by big data analysts."

He also mentioned that Korea should not give up on the LFP battery market, which it entered late. China has preempted the low-cost LFP battery market and holds a majority share in the global electric vehicle and ESS markets. Former Vice Chairman Kwon said, "Although we joined the LFP battery market late, there is still a chance of success." He believes opportunities will arise as latecomers focus on technological innovation.

He also voiced his opinion on the recent slump in the Korean economy. He emphasized the government's role, saying, "Innovation happens top-down." He added, "Restructuring is necessary not only at the company level but also at the national level," and "The government must drive efforts to develop new businesses."