"Prepare for Survival Five Years From Now"...LG Chairman Koo Kwangmo Inspects Indonesia Production Lines

Inspection of 'HLI Green Power' Battery Cell Production Line
Listening to Local Home Appliance Operation Strategies
"Seeking Growth Opportunities in Future Potential Markets"

Koo Kwangmo, chairman of LG, visited Indonesia, the largest potential market in Southeast Asia, to emphasize his commitment to fostering the battery business as a breakthrough for the electric vehicle chasm. He also inspected local home appliance production lines to review LG's global strategy.

On June 9, LG Electronics announced that earlier this month, Chairman Koo visited Indonesia and toured 'HLI Green Power,' a joint venture established by LG Energy Solution and Hyundai Motor Group. Chairman Koo inspected the electric vehicle battery cell production line and visited LG Electronics' Cibitung production and research & development (R&D) subsidiaries, as well as local home appliance retail stores, to assess the competitiveness of the entire value chain spanning production, R&D, and distribution.

Indonesia, with a population of 280 million, is the largest country in Southeast Asia and the fourth largest in the world, making it the region's biggest potential market. It holds the world's largest reserves and production of nickel, a key mineral for batteries, positioning Indonesia as a strategic hub for electric vehicles in Southeast Asia. Since LG Electronics first entered Indonesia in 1990, LG has expanded to operate a total of 10 subsidiaries and 4 production plants there, including LG Innotek, LG CNS, and LG Energy Solution.

LG Electronics stated, "After Chairman Koo visited India in February, his subsequent trip to Indonesia reflects his determination to find growth opportunities in future potential markets that are increasingly important amid global geopolitical changes, not only in consumption and production but also in research and development."

Koo Kwangmo, chairman of LG, is delivering a congratulatory speech at the LG Awards held on April 9 at the LG Inhwa Garden in Icheon, Gyeonggi Province. Provided by LG. Photo by Yonhap News.

Chairman Koo also reportedly emphasized the importance of partnership and collaboration to overcome the electric vehicle chasm. HLI Green Power is a battery cell factory established by LG Energy Solution and Hyundai Motor Group in the Karawang New Industrial Complex in Indonesia. The plant, built on a 320,000-square-meter site, can produce 10 GWh (gigawatt-hours) of battery cells annually, enough to power about 150,000 electric vehicles. The plant began full-scale mass production of battery cells in April last year, and within just four months, achieved a yield rate exceeding 96%, a testament to the success of their collaboration.

Chairman Koo also inspected the battery cell production line, including the electrode, assembly, and activation processes, and urged the team to focus on securing LG's unique competitive edge in batteries compared to its competitors. The battery cells produced at HLI Green Power are inscribed with the message, "We wish for these to become the heart of future mobility."

At the shareholders' meeting held at Yeouido Twin Towers in March this year, Chairman Koo declared, "We will ensure that the battery industry grows into a key national industry of the future and a core business of the group," reaffirming his commitment to developing the battery business. Last year, he visited the Ultium Cells Plant 2, a joint venture with GM in Tennessee, USA, to inspect the production line and encourage employees.

An LG representative explained, "Although the electric vehicle chasm is lasting longer than expected and competition with Chinese companies is intensifying, Chairman Koo's determination to thoroughly prepare for the post-chasm era is clearly reflected in these actions."

In addition, Chairman Koo visited LG Electronics' Cibitung production and R&D subsidiaries, as well as local home appliance retail stores. LG Electronics manufactures TVs, monitors, and signage in Cibitung, located in western Jakarta, and produces refrigerators and air conditioners in Tangerang, northwest of Jakarta. Chairman Koo visited the LG Electronics production and R&D subsidiaries in Cibitung to inspect the unmanned TV production line and review LG Electronics' global R&D operation strategy.

Chairman Koo also met with local management and employees at LG Electronics' sales subsidiary in Jakarta to listen to market trends and business updates in Indonesia and other major Southeast Asian countries. He reportedly emphasized, "While it is important to respond to the current intensifying competition, please focus on developing strategies to survive five years from now and to achieve differentiated competitiveness through the right choices and focus."

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