AI transformation push has become LG Energy Solution’s new strategic priority. Specifically, CEO Kim Dong-myung announced on Monday that the South Korean battery maker aims to boost overall productivity by 50 percent by 2028. The company will achieve this through an aggressive artificial intelligence transformation initiative. This new target marks an increase from LG Energy Solution’s earlier goal of improving productivity by 30 percent by 2030. The company decided to pursue a more ambitious target as rivals accelerate investments and establish dedicated AI organizations.
Kim stressed AI-driven transformation as an essential task directly tied to the company’s survival in a message to employees. His remarks come as South Korea’s battery giants face a tough market environment. Slowing electric vehicle demand and intensifying competition from China-based rivals have created significant challenges. Kim described the current global battery market as a tilted playing field. Rivals are engaging in fierce competition backed by massive government support and large-scale human resources.
It is difficult to expect meaningful chances of victory by responding with simple quantitative competition, Kim said. Through AI-driven transformation, we need to change the rules of the game to center on our core assets and talents. Kim identified LG Energy Solution’s key strengths as its extensive intellectual property portfolio, nearly 30 years of industry experience, and highly skilled workforce. Consequently, combining those assets with AI could create powerful synergies and reshape the competitive landscape.
As part of the plan, LG Energy Solution will provide a stronger support system to ensure successful AI adoption across the organization. The company will operate an AI Governance Committee chaired monthly by the CEO. This committee will oversee the introduction of AI solutions and review issues related to security and change management. Furthermore, the company also plans to gradually introduce an enterprise AI platform in business areas not directly tied to nationally strategic technology. LG Energy Solution will expand AI education programs for employees.
Kim dismissed concerns that broader AI adoption would threaten jobs. Even if you have a calculator, you need to understand the principles of calculation to use it properly, Kim said. Likewise, people with the experience to define and structure problems will be better at using AI. He stressed that the company’s AI transformation is not intended to make employees less important. Rather, it will help them focus on real work that creates greater business impact and move away from inefficient work.
The battery maker faces intense competition from Chinese rivals such as CATL and BYD. These companies have received substantial government support and have scaled production rapidly. LG Energy Solution’s AI transformation push seeks to differentiate through operational excellence and innovation. The company will need to execute effectively to achieve its ambitious 50 percent productivity target. Thus, success would position LG Energy Solution as a more efficient competitor in the global battery market. Industry observers will watch closely to see whether LG Energy Solution can meet its goals.
