LG Energy Solution new CEO's first task is to restore confidence after recall

[Source: LG Group]

“Winning confidence from customers is the highest priority as lithium battery is still in fledging stage,” said the new CEO of LG Energy Solution Ltd. which has agreed to near $2 billion recall to replace batteries for all Chevrolet Bolt vehicles.

“The battery business has only begun,” Kwon Young-soo told the Maeil Business Newspaper upon inauguration following shareholders’ endorsement in a reshuffle in the management for liability in the most expensive recall ever on a per-vehicle basis on Monday.

“What’s important is customers’ value, not market share,” he said.

Kwon, previously vice chairman of LG Group’s holding company LG Corp., had led renewable energy business at LG Chem Ltd., the parent of LG Energy Solution, for five years until 2016. The battery unit was spun off in December last year.

Kwon would be responsible for seeing through the recall and multi-billion-dollar manufacturing projects across the world to cement No. 1 rank in the global market outside China with order backlog of $170 billion. Its ventures include 2.7 trillion won ($2.3 billion) battery facility with General Motors, separate 5 trillion won facility in the U.S., $3.4 billion joint-venture with Stellantis N.V., and $1.1 billion battery plant in Indonesia.

The company also is readying an IPO.

His upmost focus for now is to rebuild consumers’ and clients' trust following a series of recalls made for its EV batteries supplied to Hyundai Motor and General Motors.

He vowed to thoroughly review the whole battery production process to find causes of the recent recalls and solutions.

Regarding rumors on possible change in the company’s battery producing method, Kwon said nothing has been decided whether to drop the current lamination and stacking method for manufacturing battery cells.

He expected that the company’s initial public offering process, which was initially expected to start within this year, would be back on track soon from the delay caused by battery recall cases.

LG Energy Solution is a pioneer in the global rechargeable battery industry and has the largest intellectual property portfolio of over 25,000 battery related patents, said Kwon in his inaugural letter to employees, urging them to turn a crisis into an opportunity.

On Tuesday, shares of LG Chem, parent of LG Energy Solution, closed 0.12 percent lower at 831,000 won ($707.60) in Seoul.

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]