LG Energy Solution (LGES) is planning to invest in NCMA (nickel-cobalt-manganese, aluminum) and LFP (lithium-iron-phosphate) batteries to strengthen its portfolio.
On Thursday, March 14, the South Korean battery supplier reported that it invested over 1 trillion won ($760 million) in research and development (R&D) last year. LGES emphasized that 2023 was the first time it had invested over 1 trillion won in R&D despite “faltering” demand for electric vehicles.
The battery company’s R&D investments increased 18.4% from 876 billion won ($658 million) in 2022 to 1.037 trillion won in 2023. It plans to secure “unrivaled competitiveness” in the battery cell industry by investing more in its R&D sector.
In October 2023, after LGES announced its Q3 2023 earnings, the South Korean company warned of slowing revenue in 2024. The battery manufacturer warned of global economic uncertainties that might affect electric vehicle sales. Despite the company’s warning, LGES is pushing through with its R&D investments in battery cells for electric vehicles.
LGES also increased its investments in production facilities last year by 73% to 10.90 trillion won ($8.1 billion). It currently has two operational battery plants in the United States, one in Ohio and another in Michigan. LG Energy Solution also operates battery manufacturing factories in South Korea, Poland, and China. The Asian battery manufacturer is building six more factories, including one in Canada and one in Indonesia.
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