Koo Kwang-mo’s Commitment to EV Development During Indonesia Visit
LG Group Chairman Koo Kwang-mo emphasized the importance of EV battery development during his visit to Indonesia, highlighting the country’s role as a crucial market and resource supplier. He inspected the HLI Green Power battery plant, underscoring plans for maintaining competitive edge amid global uncertainties. This trip showcases LG’s strategic commitment to expanding its operations and R&D in Indonesia, reflecting its growth ambitions in the EV sector.
LG Group Chairman Koo Kwang-mo has solidified his commitment to the development of electric vehicle (EV) batteries, which he views as essential to the company’s growth. This affirmation came during his recent trip to Indonesia, a nation that holds significant importance for both consumer demand and resources vital to the company.
Koo made remarks regarding the necessity for LG to create a distinct competitive edge through strategic focus, especially amidst rising global trade uncertainties, notably the tariffs initiated during the Trump administration. His visit spanned from June 2 to June 4, during which he toured the HLI Green Power battery facility in Karawang, West Java. This site represents a joint venture between LG Energy Solution and Hyundai Motor Group.
The HLI Green Power plant is substantial, measuring 79 acres and capable of generating 10 gigawatt-hours of battery cells annually, which could power about 150,000 EVs. The facility began mass production in April 2023 and reported an impressive production yield of over 96 percent within just four months of operation.
During his inspection, Koo focused on important production processes like electrode manufacturing and cell assembly. He urged his teams to improve LG’s competitive edge in battery technology and highlighted the company’s unique capabilities. Koo made a personal touch during his visit by writing a handwritten message on a battery cell that said, “I hope this becomes the heart of future mobility.”
This latest trip was not Koo’s initial venture into battery plants, as he had previously visited facilities in Wrocław, Poland, and a Ultium Cells plant in Ohio in 2022. Additionally, he toured a cathode materials facility in South Korea in 2023, and has plans to visit another Ultium site in Tennessee in 2024.
At LG’s annual shareholder meeting held in March, Koo expressed ambitions to elevate the battery sector into a key industry for both the nation and LG itself, dubbing it the group’s flagship sector.
Koo also explored LG Electronics’ manufacturing and R&D site in Cibitung, just outside of Jakarta, which produces TVs, monitors, and digital signage aimed at the Indonesian market as well as export to areas like Asia, the Middle East, and Africa. He reviewed automated TV production lines and engaged in discussions regarding global R&D strategies.
His schedule further included a visit to the LK Electronics’ sales office in Jakarta, where he assessed market trends and performance with local executives. Koo noted, “While it’s important to respond to today’s intensifying competition, we must also prepare for what will keep us alive five years from now. Let’s focus on selective bets that can yield a unique competitive edge.”
In addition to these visits, Koo checked out Electric City, a local retail store, to see how LG products are performing and to gauge the competitive landscape against Chinese brands in the market.
Notably, Indonesia is vital for LG’s strategy; it has a population of around 280 million, making it Southeast Asia’s largest and the fourth largest globally. The country leads the world in nickel production, a crucial component for EV batteries, linking both resource acquisition and future consumer demand.
LG has cultivated its Indonesian presence since LG Electronics entered the market back in 1990. The expansion continued with LG Innotek in 2000, LG CNS in 2006, and LG Energy Solution in 2021, resulting in ten local entities, including four production sites.
One LG official remarked, “Chairman Koo’s visit to Indonesia right after his trip to India reflects a strong commitment to finding growth opportunities not only in consumption and production, but also in R&D, in high-potential markets.”
Overall, Koo’s trip to Indonesia underscores LG’s intent to enhance its foothold in the EV battery sector, bolstered by Indonesia’s precious resources and a growing market.
In conclusion, Chairman Koo Kwang-mo’s recent visit to Indonesia emphasizes LG’s strategic focus on electric vehicle battery development as a key driver of growth. The tour marked another step in LG’s commitment to maintaining a competitive edge and expanding its presence in one of Southeast Asia’s largest markets, while also addressing future demands for EVs and technological innovation. With such initiatives, LG aims to solidify its status as a leader in the battery industry.
Original Source: koreajoongangdaily.joins.com
