LG Chief Koo Stands by EV Development as Key to Company’s Growth During Indonesia Trip
LG Group Chairman Koo Kwang-mo visited Indonesia from June 2 to 4, affirming his dedication to developing electric vehicle batteries as a vital growth driver for the company. His tour included a visit to the HLI Green Power plant and LG Electronics’ facilities. Koo stressed the need for differentiation in the face of global trade uncertainties and emphasized Indonesia’s strategic importance as a market and resource hub for EV production.
During a recent trip to Indonesia, LG Group Chairman Koo Kwang-mo reiterated the importance of electric vehicle (EV) batteries as a pivotal part of the company’s growth strategy. His visit, spanning June 2 to June 4, was particularly significant given Indonesia’s position as a major player in consumer demand and resource supply, especially for EV production.
Koo underscored the necessity for LG to carve out a distinct competitive advantage amid the global trade uncertainties influenced by changing tariffs from the previous U.S. administration. This visit marks Koo’s third overseas trip this year, following trips to India and the UAE earlier.
During his stay in Indonesia, Koo toured the HLI Green Power battery plant in Karawang, West Java, a partnership between LG Energy Solution and Hyundai Motor Group. This facility, which covers 79 acres, can produce battery cells capable of powering around 150,000 EVs annually. Notably, the plant began mass production in April 2023 and has already achieved a production yield exceeding 96 percent.
Koo observed key production stages such as electrode manufacturing and cell assembly, and he has now called for continuous improvements in LG’s battery technology. In a personal touch, he left a handwritten note on a battery cell stating, “I hope this becomes the heart of future mobility.”
This visit wasn’t Koo’s first to a battery production site. He has also visited LG Energy Solution plants in Poland and the U.S. He emphasized his ambition to advance the battery sector into a major industry for both LG and the nation during the company’s annual shareholder meeting in March.
Alongside the battery plant, Koo checked out LG Electronics’ production and R&D facilities in Cibitung, where televisions and monitors are made for Indonesia and exported to various regions. He engaged in discussions about global R&D strategies and inspected the automated production lines.
He also visited LG Electronics’ Jakarta sales office to review how the company is performing in the Indonesian market amidst growing competition, especially from Chinese brands. Koo emphasized the importance of planning for the future amid fierce competition saying, “While it’s important to respond to today’s intensifying competition, we must also prepare for what will keep us alive five years from now.”
Indonesia remains a vital market for LG, with a population of 280 million – the largest in Southeast Asia and the fourth-largest globally. The country stands out as a key global supplier of nickel, crucial for EV battery production, which highlights both its resource value and future consumer demand potential.
LG has steadily built its presence in Indonesia since launching in 1990, expanding over time to operate ten local entities, including production sites. LG officials acknowledged Koo’s recent trips as reflective of a concerted effort to explore growth opportunities in dynamic markets across consumption, production, and R&D.
This visit aligns with LG’s long-term strategy to leverage Indonesia’s potential, blending resource availability with market expansion.
In conclusion, Chairman Koo Kwang-mo’s visit to Indonesia highlights LG’s commitment to the development of EV batteries as a crucial part of its growth strategy. The trip included significant site visits and discussions on enhancing competitive advantages in a rapidly evolving market. With Indonesia’s growing importance as a hub for resource procurement and consumer demand, LG is positioning itself strongly for future opportunities in the Southeast Asian market. Koo’s hands-on approach signals a determination to maintain a competitive edge amid intensifying global competition.
Original Source: koreajoongangdaily.joins.com
