LG Energy Solution

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Wikipedia

LG Energy Solution, Ltd.
Native name
주식회사 엘지에너지솔루션
Company typePublic subsidiary
KRX: 373220
FoundedDecember 1, 2020; 5 years ago (2020-12-01)
Headquarters
Seoul
,
South Korea
Key people
Kwon Young-soo (chairman)
ProductsLithium-ion battery
ParentLG Chem (81%)
Websitewww.lgensol.com

LG Energy Solution Ltd. (LGES; Korean: 주식회사 엘지에너지솔루션) is a battery company headquartered in Seoul, South Korea. LGES is one of the largest battery makers in the world alongside CATL, Panasonic, SK Innovation, and Samsung SDI.[1]

History

LG Chem Energy Solution Business Division (1992–2020)

LG Chem started a battery business after LG Group chairman Koo Bon-moo visited the United Kingdom Atomic Energy Authority office in 1992. After the visit, Koo brought rechargeable battery samples and began research into the emerging technology. LG Chem produced Korea's first lithium-ion battery in 1999 and began supplying automotive batteries for the Chevrolet Volt produced by General Motors in the late 2000s. Later, the company became a battery supplier to global car makers, including Ford, Chrysler, Audi, Renault, Volvo and SAIC Motor.[2][3]

LG Energy Solution (2020–present)

In September 2020, LG Chem announced that it would spin off its battery business to cope with growing demand from global automotive manufacturers. LG Chem's battery business officially became a separate company and changed its name to LG Energy Solution Ltd. in December 2020.[4] It subsequently undertook an IPO process to secure funds in order to increase its battery production capacity and debuted on the Korea Exchange in January 2022.[5][6] It was South Korea's biggest IPO at that point.[7] In the first half of 2022, LG Energy Solution was ranked second in the world in market share, with 14 per cent according to SNE research.[8] On 4 September 2025, United States Immigration and Customs Enforcement detained 300 South Korean workers during a raid of Hyundai Motor Group Metaplant America, sparking an array of responses from South Korean leaders.[9]

Automotive Partnerships

Joint Ventures

Name Partner companies Establishment date Dissolution date LG ownership share (%) Initial investment

(USD)

 Ref.
Ultium Cells LLC General Motors December 2019 50 2.3 billion [10][11][12][13]
NextStar Energy Stellantis March 2022 February 2026 51 4.1 billion [14][15][16]
L-H Battery Company Honda January 2023 51 3.5 billion [17][18]
HL-GA BATTERY COMPANY Hyundai Motor Company May 2023 50 4.3 billion [19][20]
LG-HY BCM Zhejiang Huayou Recycling Technology August 2023 [21][22]
Toyota Tsusho
Green Metals Battery Innovations Toyota Tsusho June 2025 49 [23]

Supply Agreements

Client Agreement date Deal value (USD) Supply start date Original contract duration/Supply end date Termination date Forecasted supply (GWh) Ref.
Toyota October 2023 ~3 billion 2025 20 [24]
Ampere (company) July 2024 2025 5 years 39 [25]
Ford Motor Company October 2024 2026 4-6 years December 2025 109 [26][27]
Mercedes-Benz Group October 2024 2028 10 years 50.5 [28]
September 2025 2028 2035 32 [29]
2029 2037 75
December 2025 1.4 billion 2028 2035 [30]

Controversies

According to General Motors, manufacturing defects in batteries supplied for Chevrolet Bolt caused 13 confirmed battery fires. The faulty batteries were produced in LGES plants in South Korea and Michigan, and GM pursued reimbursement from LG. In the end, LGES and LG Electronics agreed to pay GM up to $1.9 billion for the recalls on every car produced since 2016.[31][32]

See also

References

  1. ↑ Yang, Heekyong; Shirouzu, Norihiko (March 9, 2022). "Contracts shield Asia's EV battery makers from nickel surge, for now". Reuters. Seoul/Beijing.
  2. ↑ Seo, Ji-eun (May 20, 2018). "Koo Bon-moo brought LG into 21st century". Korea Joongang Daily.
  3. ↑ Yang, Heekyong (December 7, 2021). "Factbox: LG Energy Solution, the battery maker behind S.Korea's biggest IPO". Reuters. Seoul.
  4. ↑ Kim, Eun-jung (December 1, 2020). "LG Energy Solution sets sail to target growing EV market, but challenges lie ahead". Yonhap. Seoul.
  5. ↑ Kim, Eun-jung (January 29, 2021). "LG Energy Solution accelerates IPO push as it picks lead managers". Yonhap News Agency. Seoul.
  6. ↑ "LG Energy Solution: Battery giant jumps in market debut". BBC. January 27, 2022.
  7. ↑ "LG Energy Solution debuts after $13 trillion frenzy in Korea's biggest IPO - The Korea Times". www.koreatimes.co.kr. 2022-01-27. Retrieved 2026-02-11.
  8. ↑ "2022 1H Global[1] EV & Battery Performance Review". SNE research. Retrieved 1 October 2022.
  9. ↑ Tong-Hyung, -Kim; Tong-Hyung, Associated Press Kim; Press, Associated (2025-09-08). "South Koreans face shock and confusion after worker detentions at Georgia Hyundai plant". PBS News. Retrieved 2026-02-07.
  10. ↑ "ULTIUM CELLS". Energy.gov. Retrieved 2026-01-20.
  11. ↑ "Site Maintenance". www.ultiumcell.com. Retrieved 2026-01-20.
  12. ↑ Wayland, Michael (2019-12-05). "GM, LG Chem to create $2.3 billion battery cell venture for electric vehicles, to create 1,100 jobs in Ohio". CNBC. Retrieved 2026-01-20.
  13. ↑ "LG Energy to buy GM's stake in Michigan battery plant for $2 billion". koreajoongangdaily.joins.com. 2025-04-01. Retrieved 2026-02-06.
  14. ↑ "Who We Are – NextStar Energy". nextstar-energy.com. Retrieved 2026-02-06.
  15. ↑ "Stellantis and LG Energy Solution to Invest Over $5 Billion CAD in Joint Venture for First Large-scale Lithium-ion Battery Production Plant in Canada – NextStar Energy". nextstar-energy.com. Retrieved 2026-02-06.
  16. ↑ "LG Energy Solution to Acquire Full Ownership of NextStar Energy in Joint Strategic Decision with Stellantis". Stellantis.com. Retrieved 2026-02-06.
  17. ↑ "LG Energy Solution and Honda to Form Joint Venture for EV Battery Production in the U.S." Honda Corporate Newsroom. 2022-08-29. Retrieved 2026-01-20.
  18. ↑ "LG Energy Solution and Honda Formally Establish Battery Production Joint Venture". Honda Corporate Newsroom. 2023-01-13. Retrieved 2026-01-20.
  19. ↑ "Hyundai Motor Group and LG Energy Solution to Establish Battery Cell Manufacturing Joint Venture in the U.S." www.hyundai.news. Retrieved 2026-01-20.
  20. ↑ "About -". hlgabattery.com. 2024-12-23. Retrieved 2026-02-06.
  21. ↑ "LG Energy Solution Establishes Its First Battery Recycling Joint Venture with Huayou Recycling - LG Energy Solution". news.lgensol.com. Retrieved 2026-02-13.
  22. ↑ "Toyota Tsusho Invests in South Korea's LG-HY BCM - Establishing a Stable Supply System for Lithium-Ion Battery Materials - | Toyota Tsusho". Toyota Tsusho Corporation. Retrieved 2026-02-13.
  23. ↑ "Toyota Tsusho and LG Energy Solution Agree to Establish Automotive Battery Reclamation Joint Venture in North America | Toyota Tsusho". Toyota Tsusho Corporation. Retrieved 2026-02-13.
  24. ↑ Mast, Garrett (2023-10-04). "LG Energy Solution and Toyota Sign Long-term Battery Supply Agreement to Power Electric Vehicles in the U.S." Toyota USA Newsroom. Retrieved 2026-01-20.
  25. ↑ "LG Energy Solution to Supply LFP EV Batteries to Renault Group's Ampere - LG Energy Solution". news.lgensol.com. Retrieved 2026-01-20.
  26. ↑ "LG Energy Solution to Power Electric Versions of Ford's Commercial Vans in Europe - LG Energy Solution". news.lgensol.com. Retrieved 2026-01-17.
  27. ↑ "Ford cancels EV battery deal worth $6.5 billion with South Korea's LG Energy Solution". CNBC. 2025-12-17. Retrieved 2026-01-17.
  28. ↑ Joon-hyun, Moon (2024-10-08). "LG Energy Solution wins 10-year battery supply deal from Mercedes". The Korea Herald. Retrieved 2026-02-06.
  29. ↑ Hye-jin, Byun (2025-09-03). "LG Energy Solution deepens Mercedes-Benz ties with massive battery deals". The Korea Herald. Retrieved 2026-02-06.
  30. ↑ "LG Energy Solution lands $1.4 bil. Mercedes-Benz battery deal - The Korea Times". www.koreatimes.co.kr. 2025-12-08. Retrieved 2026-02-06.
  31. ↑ Wayland, Michael (October 12, 2021). "LG to pay up to $1.9 billion to General Motors over Bolt EV battery fires". CNBC.
  32. ↑ Kim, Seung-yeon (October 13, 2021). "LG units to repay GM 1.4 tln won for Bolt EV battery recall costs". Yonhap News Agency. Seoul.
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