[Exclusive] Kwon Young-soo's LG Energy Solution Replaces Battery Equipment... Also Adopts Samsung and SK Methods

Improvement of 'Laminate & Stacking' Method... Introduction of 'New L&S'
Z-Folding Method Also to Be Applied
Blocking Potential Risks... Commitment to IPO Success

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution has decided to replace its battery manufacturing process following the deployment of Vice Chairman Kwon Young-soo as a special troubleshooter to resolve the battery recall crisis. Along with improvements to the cell stacking (lamination & stacking) battery equipment, which has been maintained so far, the company plans to introduce manufacturing methods used by competitors.

According to industry sources on the 28th, LG Energy Solution is discussing detailed plans with domestic battery equipment manufacturers to apply various stacking equipment processes, including the 'Z Folding' method.

Z Folding stacks the separator in a zigzag pattern to wrap the anode and cathode, separating them to prevent contact, which is highly regarded for its safety. Among competitors, SK Innovation and Samsung SDI have already adopted this method.

The lamination & stacking method currently used by LG Energy Solution involves stacking individual cells composed of cathode material, anode material, and separator layer by layer. Its advantage over Z Folding is faster production speed. However, it is a process that requires very precise cell alignment, as misalignment can compromise safety. The decision to introduce Z Folding equipment in some lines appears to be based on this background.

LG Energy Solution is expected to sequentially introduce the Z Folding process starting with domestic factories and then overseas plants. To avoid disruptions in battery production, only parts of the production line will be replaced initially. At the same time, the existing lamination & stacking method will also be improved. The improved process has been tentatively named 'New L&S.'

The industry interprets this move as a measure comparable to Samsung Electronics' full recall of the Galaxy Note 7. Previously, LG Energy Solution reached an agreement on recall costs related to battery fires with Hyundai Motor Company and General Motors (GM), which use its batteries. Despite the final agreement, concerns about the possibility of additional battery fires remained.

An electronics industry official said, "There are several suspected causes of battery fires, and this move signals that no more issues will be tolerated from the manufacturing stage onward," adding, "Equipment reflects the manufacturer's core technology and security, so making the decision to change equipment is a significant one."

Furthermore, this is also interpreted as a sign of LG Energy Solution's strong determination to succeed in its initial public offering (IPO). An industry insider said, "Although the recall cost agreement was finalized, concerns about additional fires inevitably affected the valuation," adding, "This move appears to be aimed at eliminating latent concerns in the market to successfully complete the IPO."

A representative from LG Energy Solution stated, "Our L&S method is a differentiated manufacturing process with various secured patents, and we continuously upgrade it for further improvements in productivity and quality. However, no final decision has been made yet regarding which method will be applied."

This content was produced with the assistance of AI translation services.