LG Energy Solution CEO: Strategic US expansion to offset trade challenges
Kim Dong-myung, CEO of LG Energy Solution and chairman of the Korea Battery Industry Association, stated Wednesday that the company is well-positioned to benefit from its extensive US production facilities, despite the tariff threats from President Donald Trump.
'The tariff policies of the new US administration fundamentally encourage domestic production,' Kim said during a press briefing at the InterBattery 2025 exhibition in Gangnam, Seoul. 'We intend to capitalize on our US factories effectively to align with this initiative.'
LG Energy Solution operates eight battery manufacturing facilities, including joint ventures with global automakers — the largest number among its Korean competitors. In comparison, SK On operates six and Samsung SDI runs three plants, either independently or in collaboration with other companies.
However, Kim remained cautious when asked about the possibility of tariffs on electric vehicle batteries under Trump's administration, stating, 'We will have to wait and see, just as he (Trump) has said.'
Regarding earnings projections for the first quarter of 2025, Kim said, 'We cautiously predict that the first quarter or first half of the year may be our lowest point, with gradual improvements expected in the second half. However, given market volatility, we need to remain vigilant. As stated earlier this year, we will maintain our strategy of pursuing efficient investments.'
He added that LG Energy Solution is preparing for potential market stabilization and a rebound in EV demand following the current slowdown in the industry.
When asked about the growing dominance of Chinese battery manufacturers, Kim emphasized, 'LG Energy Solution takes pride in having shaped the battery industry, as evidenced by our extensive portfolio of battery-related intellectual properties. We have also proven our capabilities in global operations.'
He highlighted that LG Energy Solution will leverage its next-generation technologies, including 46-series cylindrical batteries, lithium iron phosphate batteries, mid-nickel batteries, sodium batteries and cell-to-pack technologies.
Chinese battery giants CATL and BYD continue to expand their market share, primarily through cost-efficient LFP batteries. According to market tracker SNE Research, CATL held a 37.9 percent market share in 2024, followed by BYD at 17.2 percent, securing the top two positions globally.
In line with LG Group's strategic expansion into India, Kim noted that LG Energy Solution is actively exploring emerging markets, including India, to further diversify its customer base.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
2 hours ago
- Korea Herald
Economic technocrat-turned-Doosan executive nominated as industry minister
Kim Jung-kwan, a former Finance Ministry official-turned-industry executive, has been nominated to lead South Korea's Ministry of Trade, Industry and Energy, bringing both government and corporate expertise to the role. President Lee Jae Myung tapped Kim, who currently serves as executive vice president and chief marketing officer at Doosan Enerbility, a major Korean engineering and plant construction company, as the new industry minister. The move is seen as part of Lee's drive to accelerate the country's transition to renewable energy and advance next-generation sectors such as offshore wind power and small modular reactors. Before joining Doosan in 2018, Kim built an extensive career with experience and expertise in economic policy within government, holding key positions at the Ministry of Economy and Finance, the Bank of Korea and the International Bank for Reconstruction and Development, the lending arm of the World Bank Group.
Korea Herald
3 hours ago
- Korea Herald
Hyundai, Kia gain US market share amid tariffs
Hybrid vehicles, pre-tariff inventory strategy driving Korean automakers' growth Hyundai Motor and Kia achieved a combined 11 percent market share in the United States in the first five months of this year as the Korean automakers rolled out hybrid vehicles ahead of new US tariffs and carried out timely promotions. According to market analysis firm Wards Intelligence on Sunday, Hyundai Motor and Kia sold a total of 752,778 vehicles in the January-to-May period this year, up 0.5 percentage point from the same period last year. Hyundai sold 400,116 units while Kia sold 352,662 units. The Korean automakers' combined market share in the US has continuously grown this year, from a 10.5 percent market share in January, when they sold 116,362 cars. Their monthly market share also showed a steady upward trend without a single month of decline during the first five months of the year. Industry watchers attribute the strong performance to Hyundai and Kia's proactive response to the shifting trade landscape ahead of the Trump administration's planned 25 percent tariff on auto imports. The Korean automakers appear to have capitalized on US consumers hurrying to buy cars in March and April in advance of an expected rise in car prices due to the tariffs. Hyundai and Kia sold 162,615 cars in April, up 16.3 percent on-year — their best April figure on record — outpacing the industry's 11.1 percent year-on-year increase that month. Sales of hybrid vehicles in April soared 65.8 percent on-year to 26,134. Despite a steep decline in the US auto market in May, the Korean automakers sold 170,251 units in that month for a year-on-year increase of 6.7 percent, more than doubling the overall auto industry's sales growth of 2.5 percent. '(Hyundai and Kia) preemptively moved to stockpile inventory before the tariffs went into effect in April to meet the increase in demand from US customers,' said an auto industry official. 'They also set up an expanded lineup of hybrid vehicles -- which have been gaining popularity amid slowing momentum in the transition to electric vehicles -- to gain a competitive edge in the US market.' The outlook for the second half of this year, however, remains grim for the Korean automakers as they run out of pre-tariff inventory and face pressure to increase their prices. The Korean government has begun discussing trade policies with the US to minimize damage to Korea's export-heavy industries, but US President Donald Trump mentioned earlier this month that the US may hike auto tariffs in the 'not too distant future.'
![[KH Interview] Korea central to BAT's smokeless pivot: COO](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F06%2F29%2Fnews-p.v1.20250629.f0d5b07b54594595887ee1dfff0d2fa1_T1.jpg&w=3840&q=100)
Korea Herald
5 hours ago
- Korea Herald
[KH Interview] Korea central to BAT's smokeless pivot: COO
London-based tobacco giant targets 50% of sales from non-combustibles by 2035 British American Tobacco, one of the world's largest tobacco firms, is reinforcing its commitment to South Korea as a strategic hub for its smokeless transformation, positioning the country as both a key innovation testbed and a competitive frontline for next-generation nicotine alternatives, according to the group's top executive. BAT Group Chief Operating Officer Johan Vandermeulen said Korea's value to the London-based group extends far beyond immediate sales, speaking in an exclusive interview with The Korea Herald at the headquarters of the group's Korean unit, BAT Rothmans, in Seoul on June 20. 'Korea offers a unique blend of sophisticated consumers, cutting-edge technology and a dynamic regulatory environment that makes it an ideal testing ground for our next-generation products,' said Vandermeulen, a 30-year BAT veteran who assumed the role of global COO in 2023. He visited Korea as part of an Asia tour that also included Japan and China. Korea was the second market globally to launch BAT's tobacco heating product Glo in 2017, and is currently the second-largest heated products market globally — two signs that reflect BAT's confidence in Korea as a proving ground for innovation, he said. Since then, the Korean heated tobacco market has become one of the most competitive in the world, with nearly every major global player vying for market share. BAT is aiming to stay ahead by focusing on product innovation, localization strategies and technology enhancements tailored to Korean consumers, who Vandermeulen described as 'distinct and trend-sensitive.' 'BAT Rothmans here possesses exceptional capabilities, and our manufacturing facility in Sacheon (in South Gyeongsang Province) is regarded as one of the best within the entire BAT Group,' he added. 'Innovation, technology and talent — these are the core strengths of the Korean market, and why BAT is so focused on it.' The company's Glo Hyper series was the first device in its lineup to feature a display screen and boost button, both aimed at improving user experience. BAT developed the heating sticks specifically for the Korean consumer palate. BAT has also rolled out its vapor brand, Vuse, in Korea, emphasizing quality, product stewardship and responsible marketing. The devices come in various formats — slim and box types — and exclude flavors and features that could appeal to minors. 'We ensure that our vapor products are first stewarded at an ingredient level. Ingredients to be included in e-liquids must be, at minimum, food grade, with nicotine being pharmaceutical grade. We believe similar standards should be formally introduced and required for vaping products across the industry,' he said. Alongside Glo and Vuse, BAT is expanding globally into nicotine pouches — a category that does not involve inhalation and is now its fastest-growing segment, already launched in over 40 markets. While not yet available in Korea, the company sees opportunity as consumer preferences continue to evolve. At the heart of BAT's strategy is its mission of "A Better Tomorrow," which aims to build "A Smokeless World" by offering science-backed, non-combustible alternatives. The company aims to increase the revenue share from these products to 50 percent of its total by 2035, up from the current 17.5 percent, and to grow its adult user base to 50 million by 2030, from over 29 million today. This transformation aligns with BAT's Tobacco Harm Reduction philosophy. 'We aim to offer alternatives with reduced risk profile to cigarettes to adult smokers who would otherwise continue to smoke, thereby making a positive contribution to reduce the public health burden associated with cigarette smoking,' Vandermeulen said. On regulation, BAT supports clear, fair and consistent policies across the industry. 'We believe regulation should be clear, consistent and fairly applied. Provided these conditions are met, we view regulatory changes positively.' Still, Vandermeulen expressed concern over the rise of illicit vaping products, warning they undermine public trust and legitimate market efforts. 'This is ultimately about corporate responsibility,' he said. 'Proper regulation and enforcement are essential to protect consumers and ensure fair competition.' With nearly one billion smokers still using traditional cigarettes worldwide and only about 115 million having switched to smokeless alternatives, Vandermeulen said the stakes are high. 'We believe vaping has a vital role in encouraging adult smokers, who would otherwise continue smoking, to switch completely to smokeless alternatives. But the category can only thrive if market order is preserved.'
