"80% Foreign Market Share Battery Process Automation Localization"… LS Electric-LG Energy Solution 'Join Hands'

Development Cooperation Agreement for Manufacturing Line Controller
Application of New Battery Pack Manufacturing Process
"Localization of Production Technology... Effective Protection of Core Industry Technology"

LS Electric, the No. 1 domestic automation solution company, and global battery manufacturer LG Energy Solution are collaborating to localize battery manufacturing process controllers. The two companies expect to reduce dependence on foreign controllers and enhance the protection of core industry technologies.

On the 6th, LS Electric announced that it signed a "Partnership Agreement for Promoting the Localization of Battery Process Controllers" with LG Energy Solution at LG Energy Solution's Ochang Energy Plant the previous day. The signing ceremony was attended by Lee Sang-jun, COO of LS Electric's Automation CIC (Company-In-Company), and Son Chang-wan, CPO of LG Energy Solution, among others.

The two companies discussed jointly carrying out a project to localize automation solutions for battery manufacturing processes and plans to introduce these solutions into battery production lines in the future. Following the agreement, they will jointly develop a new manufacturing process for LG Energy Solution's battery pack production. The plan is to localize automation solutions that control the entire manufacturing process, including PLCs (Programmable Logic Controllers) that operate manufacturing equipment in a specified sequence and conditions, as well as servos, HMIs (Human Machine Interfaces), and inverters.

Yang Ki, Executive Director and Head of Basic Technology Center at LG Energy Solution; Lee Sang-jun, Chief Operating Officer (COO) of LS Electric Automation Company-In-Company (CIC); Son Chang-wan, Chief Production Officer (CPO) at LG Energy Solution; and Kim Byung-gyun, Head of Solution Business Division at LS Electric Automation CIC (from left), are posing for a commemorative photo after signing a partnership agreement for the localization of battery process controllers on the 5th.
[Photo by LS Electric]

On the 5th, LS Electric signed a partnership agreement with LG Energy Solution at LG Energy Solution's Ochang Energy Plant to promote the localization project of battery process controllers.

The industry estimates that foreign-made manufacturing and process automation equipment accounts for over 80% of domestic factory usage. Localizing manufacturing processes will improve the stability of parts supply and quality. Companies highly dependent on foreign products faced difficulties meeting delivery deadlines for automation products during the COVID-19 pandemic, causing disruptions not only in existing production but also in additional facility investments. Automation solutions typically have low compatibility between different companies' products, making it difficult to switch once implemented; thus, if supply is not smooth, the overall competitiveness of a company can decline.

If the two companies jointly proceed with pilot advanced development of process automation, it is expected to have a protective effect on core technologies in key Korean industries such as secondary batteries. Through standardization efforts and technology internalization, business competitiveness can also be enhanced. LS Electric previously established the first fully automated vehicle production line by a domestic company on the Gwangju Global Motors (GGM) 'Casper' production line in 2021. Through this collaboration with LG Energy Solution, LS Electric plans to actively target the battery process automation market. LG Energy Solution aims to achieve complete localization of automation solutions for secondary battery manufacturing processes.

An LS Electric official stated, "Following our entry into the finished vehicle production line, we will also achieve localization of battery process controllers," adding, "We will increase our market share in the domestic high-end automation market, where foreign products overwhelmingly dominate, and expand the global production control solution market."

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