Aeva Chooses LG Innotek as Supplier for Next-Generation LiDAR
Internalizing Design Capabilities through Joint Technology Development
Acquiring Stake in Aeva and Planning Up to $50 Million Investment
Strategic Initiative Led by CEO Moon Hyuksu Bears Fruit
LG Innotek will invest up to $50 million (approximately 68.5 billion KRW) in partnership with a US company to secure a leading position in the advanced LiDAR (Light Detection and Ranging) market. The company plans to begin by supplying LiDAR modules to the global market and aims to internalize design capabilities as well. This marks the first achievement of a strategic business initiative spearheaded by CEO Moon Hyuksu, who has led the diversification of LG Innotek's business portfolio, and is expected to accelerate the company's expansion into the automotive electronics (electronic and electrical equipment) market.
On July 29, LG Innotek announced that it had signed a 'strategic partnership' with Aeva, a leading US LiDAR technology company, focusing on the supply of LiDAR and joint development of next-generation LiDAR. Aeva has gained significant attention in the global autonomous driving market as the first company in the world to develop 4D LiDAR based on Frequency Modulated Continuous Wave (FMCW) technology. The company counts major automakers such as Daimler Truck among its clients and was listed on NASDAQ in January this year.
Aeva Selected LG Innotek as Supplier of Next-Generation LiDAR
LG Innotek exhibition booth set up at the 'CES 2025' exhibition hall held in January this year. LG Innotek
Through this partnership, LG Innotek aims to put its LiDAR business on track and secure the competitiveness needed to lead the global market. According to industry sources, the global LiDAR market is expected to grow rapidly at an average annual rate of 36%, from $2.446 billion (approximately 3.4 trillion KRW) last year to $15.4 billion (approximately 21.4 trillion KRW) by 2030.
The first product LG Innotek will supply to the market through Aeva is an 'ultra-slim, ultra-long-range FMCW fixed LiDAR module' capable of detecting objects at distances of up to 500 meters. LiDAR technology measures the time it takes for a laser beam to return after being emitted, allowing for precise detection of the distance, shape, and speed of objects. If LG Innotek’s camera technology serves as the 'eyes' of a product, LiDAR can be seen as adding 'sensory nerves' to those eyes.
LG Innotek plans to introduce ultra-precise sensing capabilities based on FMCW technology, which is considered the most advanced in the industry. Unlike conventional Time of Flight (ToF) LiDAR, which only measures distance, FMCW LiDAR can accurately measure both the distance and speed of moving objects. It also provides stable sensing performance under adverse weather conditions or in complex traffic environments. As a result, the adoption of FMCW LiDAR by autonomous driving companies is rapidly increasing.
The LiDAR module (hardware) will be combined with software developed by Aeva and then delivered to automaker clients as a finished product. An LG Innotek representative stated, "We have developed the product to be almost half the size of existing models so that it can be installed behind the vehicle's front windshield, increasing design flexibility compared to traditional LiDAR, which is typically mounted on the vehicle roof."
Internalizing Design Capabilities... Acquiring 6% Stake in Aeva
Moon Hyuksu, CEO of LG Innotek, is answering questions from reporters about business strategy after the '49th Annual General Meeting of Shareholders' held in March this year at LG Science Park in Magok, Gangseo-gu, Seoul. Photo by Jang Heejun
The LiDAR business is one of CEO Moon Hyuksu’s core strategic initiatives. Since taking office in March last year, Moon has focused on diversifying the business portfolio toward future growth areas such as automotive electronics, moving away from a heavy reliance on camera modules. In particular, LiDAR had previously remained at the research and development (R&D) stage under the Chief Technology Officer (CTO), but last June, Moon established a 'LiDAR Business Division' directly under the CEO, taking a hands-on approach to the business. This achievement comes just one year after that reorganization and is expected to drive further expansion of the automotive electronics portfolio.
LG Innotek and Aeva have also signed an agreement to jointly develop next-generation LiDAR. By the end of 2027, the two companies plan to develop FMCW LiDAR that can be applied not only to autonomous vehicles but also to mobility and industrial applications such as robots and robotaxis. This highlights LG Innotek's strategic plan to go beyond simple hardware manufacturing and internalize software-related technologies and design capabilities as well.
Notably, LG Innotek will acquire approximately 6% of Aeva's total shares to ensure strategic and ongoing cooperation. Including this, the company plans to invest up to $50 million (approximately 68.5 billion KRW) exclusively in the LiDAR business in the future.
CEO Moon Hyuksu stated, "Our goal is to become a key player leading the next-generation LiDAR market through a long-term technology partnership," and added, "Starting with our collaboration with Aeva, we will expand our lineup of LiDAR products that offer differentiated customer value and solidify our position as a total solution provider for future mobility in the global market."
Meanwhile, LG Innotek plans to participate in 'Aeva Day' to be held in New York, USA, on July 31 (local time), where it will unveil the roadmap for implementing the strategic partnership between the two companies. CEO Moon Hyuksu will deliver a keynote speech at the event, which will be attended by key executives from both companies as well as numerous stakeholders from the global automotive and automotive electronics industries, to directly present his vision for the future.
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