LG Energy Solution Ltd. has set an ambitious goal to double its revenue to 67 trillion won ($50 billion) by 2028, outlining a strategy to broaden its battery applications beyond electric vehicles (EVs) and strengthen its software and service offerings. The South Korean battery maker, spun off from LG Chem in 2020, is contending with a global EV market slowdown and expects this year’s revenue to drop by 20% from 2023’s 33.7 trillion won. Despite this, the company remains optimistic, aiming for mid-teen EBITDA margins and sustainable growth.
As part of its vision, LG Energy Solution plans to reduce reliance on EV batteries, which have faced market saturation, by expanding into energy storage systems (ESS) and developing batteries for urban air mobility, robotics, and marine applications. To diversify further, it will introduce various battery chemistries, including lithium manganese iron phosphate (LMFP) and high-voltage mid-nickel options, while still supporting its premium high-nickel products for competitive edge.
The company is also heavily investing in next-generation technologies, targeting leadership in solid-state and bipolar semi-solid batteries. On the software front, LG launched its “B.around” brand, offering battery management, leasing, and recycling solutions within a comprehensive battery-as-a-service (BaaS) ecosystem.
This forward-looking strategy is anticipated to strengthen LG’s position amid fluctuating market conditions, with shares climbing 4.1% on Monday following the announcement.
