LG Energy Solution unveils new vision, targets over 100% revenue growth by 2028

Seoul, South Korea—LG Energy Solution (373220. KS) announced a new corporate vision and ambitious growth targets. 

The company aims to more than double its revenue by 2028 as it expands beyond battery manufacturing into a "circular energy business."

The company, which supplies batteries to major automakers including Tesla (TSLA.O) and General Motors (GM.N), plans to grow its revenue from KRW 33.7 trillion ($25 billion) in 2023 to over KRW 67 trillion by 2028. 

LGES also targets a mid-teen percent EBITDA margin, excluding U.S. Inflation Reduction Act (IRA) tax credits.

Key points of the strategy include:

• Expanding non-EV businesses to build a balanced portfolio
• Diversifying EV product and customer portfolios
• Establishing software and service businesses
• Strengthening next-generation battery technology leadership

LGES aims to reduce dependence on its EV battery business by increasing its Energy Storage System (ESS) division and exploring new applications such as Urban Air Mobility (UAM), vessels, and robotics.

In the EV sector, the company plans to develop LFP (Lithium Iron Phosphate), LMFP (Lithium Manganese Iron Phosphate), and high-voltage mid-nickel products alongside its premium high-nickel batteries. 

LGES will also expand its cylindrical battery customer base, leveraging its 46-series batteries.

The battery maker is set to launch various services, including battery leasing, rental, and recycling, as part of a comprehensive Battery-as-a-Service (BaaS) ecosystem. 

It will also evolve its Energy-as-a-Service (EaaS) business model.

LGES plans to lead the market in solid-state batteries, producing anode products and 'graphite-based' anode products. 

The company will accelerate mass production of 'bipolar' semi-solid and low-cost high-power batteries using sulfur and sodium.

In the ESS market, LGES targets becoming a top-three global system integrator, projecting a five-fold increase in ESS business revenue by 2028. 

The company plans to start full-scale production of ESS cells in the United States in 2025.

"Our vision encapsulates the ultimate goal of LG Energy Solution to enable sustainable growth," said David Kim, CEO of LG Energy Solution. "We will generate more business prospects while strengthening our technological leadership to thrive in the market."

Established in late 2020 as a spin-off from LG Chem (051910. KS), the company currently employs 35,000 people globally.