Korea's leading battery manufacturer, LG Energy Solution, said Wednesday that it is intensifying its focus on the North American market to navigate the ongoing slowdown in electric vehicle demand.
The company said it is diversifying its production portfolio and optimizing local production lines to strengthen its regional competitiveness and attract a broader customer base.
The company’s accelerated presence in the region is driven by the expected growth of the North American EV market, despite US President Donald Trump’s reported pledge to eliminate EV tax credits. US-based market researcher Cox Automotive forecasts that the proportion of EVs among cars in the US will reach 10 percent, up 2.5 percentage points on-year.
"In the rapidly evolving North American market, we will ensure the continuous and stable growth of corporate value through proactive strategies," an LG Energy Solution official said.
As part of this effort, the company has collaborated with US automaker General Motors since last year to develop and produce a prismatic battery cell. This format is gaining favor with global automakers for its durability against external impacts.
While the two companies have focused on producing pouch cells in the region through their joint venture, Ultium Cells, they plan to incorporate the new form-factor battery into GM’s next-generation EVs.
Already known for its quality cylindrical and pouch batteries, LG Energy Solution will encompass all major EV battery form factors via joint development.
The company emphasized its readiness to integrate proprietary technologies into prismatic battery products, highlighting the multiple patents it has secured for design and packaging innovations tailored to this form factor.
The company also plans to adapt key technologies used for other battery formats to the new form factor.
In particular, it aims to apply its stacking technology, which arranges materials within battery cells, to address the issue that prismatic batteries have traditionally faced in fully utilizing space near the edges. The company previously used it to produce high-efficiency pouch batteries.
LG Energy Solution is also adjusting its production plan to offer tailored products to a broader clientele, leveraging its eight regional plants.
To ensure the facility can immediately respond to demand from a broader clientele, the company is on track to acquire GM's share of Ultium Cells' third plant, which is currently under construction in Michigan.
The company explained that the partnership with GM, which dates back over 14 years, is built on a strong foundation, and the company believes it can expand its customer base without jeopardizing its relationship with GM.
LG Energy Solution emphasized its flexibility in optimizing production to meet market conditions.
Drawing from its experience in global production, the company achieved a 90 percent yield rate at Ultium Cells' second plant in Tennessee and at its joint venture with Hyundai Motor Company in Indonesia just one month after starting operations, the company said.
forestjs@heraldcorp.com
