LG Group to invest $84 bn till 2026 to enhance battery power and supply chain

[Photo by Han Joo-hyung]

LG Group has pledged to invest 106 trillion won ($83.6 billion) and create 50,000 jobs in Korea through 2026, with a special focus on rechargeable battery and materials, next-generation display and artificial intelligence for new growth.

The fourth largest Korean conglomerate on Thursday unveiled its corporate plan for the next five years. Its chief executive, Koo Kwang-mo, is scheduled to hold a series of meeting with heads of LG companies from next week to go over action plans.

LG Group will spend a total of 106 trillion won to expand and upgrade production facilities in Korea as well as to advance technology, with 48 trillion won earmarked for research and development projects.

Of the total 106 trillion won, the group will spend 43 trillion won, or about 40 percent, on nurturing future growth businesses. It has set aside 21 trillion won for R&D projects in the fields of rechargeable battery and related materials, automotive electronics, next-generation display, artificial intelligence, big data, and green technology.

About 10 trillion won or more will go into the battery business.

LG Energy Solution, the group’s electric vehicle battery making unit, will revamp its plant in Ochang, Chungcheongbuk-do Province, to manufacture cylindrical cells. It will also explore new business opportunities, such as battery-as-a-service that allows customers to lease batteries on a subscription agreement.

LG Chem will spend 1.7 trillion won through 2026 on growing the business of battery materials, such as cathode materials, separator, and carbon nanotube. For this, the company is building a cathode materials manufacturing plant in Gumi, Gyeongsangbuk-do Province, while reviewing plans for joint venture and M&As.

The group will inject 3.6 trillion won into AI and big data sector, 1.5 trillion won or more in biotechnology business, and 1.8 trillion won in green technology, such as renewable energy sources and biodegradable plastics.

In the next five years, the group will newly hire 50,000 employees, including over 3,000 engineers and specialists in its future growth fields of battery to big data.

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