Battery Industry in Crisis... Will a Generation Shift Follow?

LG Energy Solution appoints Kim Dong-myeong as new CEO
Vice Chairman Kwon Young-soo steps down for juniors
Interest in impact on SK On and other personnel changes

Vice Chairman Kwon Young-soo, who has been growing the battery business at LG Group, has decided on a "graceful retirement." There is interest in whether a generational change will sweep through the battery industry, which is facing a crisis due to sluggish electric vehicle demand, by the end of the year.

On the 22nd, LG Energy Solution held a board meeting and carried out a regular executive appointment, appointing Kim Dong-myung, head of LG Energy Solution's Automotive Battery Division (President), as the new Chief Executive Officer (CEO).

Kim Dong-myeong, New CEO of LG Energy Solution

The new CEO Kim was born in 1969, majored in Metallurgical Engineering at Yonsei University, and earned a Ph.D. in Materials Engineering from KAIST. Since joining LG Chem's Battery Research Center in 1998, he has worked as a battery expert for 25 years.

He served as head of the Mobile Battery Development Center (Senior Managing Director), head of the Small Battery Business Division (Managing Director), and head of the Automotive Battery Business Division (Vice President) at LG Chem, and moved to LG Energy Solution in December 2020. He was promoted to president in last year's personnel reshuffle.

Vice Chairman Kwon, who was called the "second-in-command" of the group, expressed his intention to step down for the younger generation.

Kwon said, "During my time working at LG Group, my sole goal was to become the best in the world," adding, "I have always thoroughly considered what customers want from their perspective and have strived to equip myself with strong execution power armed with a 'No. 1 spirit.'"

He continued, "I sincerely thank the late Chairman Koo Bon-moo, who taught me leadership with perseverance and tenacity, as well as many senior executives and LG Group members," and added, "In particular, I deeply appreciate CEO Koo Kwang-mo, who has supported me in achieving many accomplishments while sharing the same vision for LG's major businesses over a long period. I will cheer for the future of LG Group led by CEO Koo."

Furthermore, Vice Chairman Kwon said, "The global battery industry will face an important turning point next year, and for LG Energy Solution to break through fierce competition and gain stronger competitiveness in the future, young and new leadership with swift execution capabilities is necessary," adding, "I expect the new CEO to make a greater leap by building on the challenges, innovation capabilities, and achievements accumulated over 30 years at LG Energy Solution, and I sincerely support LG Energy Solution's journey to become the world's best battery company."

Born in 1957, Vice Chairman Kwon joined LG Electronics in 1979 and held key positions throughout the group. From 2012 to 2015, he served as head of the Battery Business Headquarters at LG Chem, drawing the blueprint for the battery business. After Chairman Koo's inauguration in 2018, he was appointed Chief Operating Officer (COO) of LG Corp., contributing to the stabilization of the "Koo Kwang-mo administration."

In 2021, he moved to LG Energy Solution and successfully positioned the company as the second-largest by market capitalization through an initial public offering (IPO). He also played a decisive role in securing a battery order backlog approaching 1,000 trillion won. Vice Chairman Kwon was also appointed chairman of the Battery Industry Association earlier this year, but with this personnel change stepping down from frontline management, there will likely be changes in the association's leadership as well.

Generational changes are also anticipated at other battery companies. SK On CEO Ji Dong-seop's term is set to expire in March next year. Since its launch in 2021, SK On has continued to post losses, the only one among the three major battery companies. Although a return to profitability is expected in the fourth quarter, it faces adverse conditions such as falling raw material prices and sluggish electric vehicle demand.

CEO Ji, born in 1963, joined Yukong (now SK Innovation). He is a strategist who served as head of SK Telecom's Future Management Office and Strategic Planning Division. He led SK On's growth as the head of SK Innovation's battery business in 2019 and as the inaugural CEO of SK On. Due to these achievements, he recently became the first in the industry to receive the Silver Tower Order of Industrial Service Merit.

However, SK Group Chairman Chey Tae-won warned of "sudden death" at last month's CEO seminar, saying, "If we do not change quickly, we cannot survive," signaling changes ahead of group personnel reshuffles. Depending on the atmosphere of the group personnel changes expected next week, CEO Ji may also be affected.

Samsung SDI CEO Choi Yoon-ho's term runs until March 2025, and he is expected to remain in office this time. Samsung SDI is recording stable management performance, and CEO Choi enjoys strong trust from Samsung Chairman Lee Jae-yong.

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