Synopsis
On March 5, LG Energy Solution Ltd (LGES) projected a decline in global battery demand during the first half of 2025, as reported by CEO Kim Dong-myung at the InterBattery 2025 exhibition in Seoul. The company is preparing for a rebound in electric vehicle markets amidst current economic challenges.Key Takeaways
- LGES forecasts battery demand to reach its lowest in early 2025.
- CEO Kim Dong-myung emphasizes the need for strategic investment adjustments.
- Challenges include high inflation and inadequate EV infrastructure.
- The next few years are seen as a critical opportunity for product enhancement.
- New cylindrical EV battery cells showcased at the exhibition.
Seoul, March 5 (NationPress) LG Energy Solution Ltd (LGES), the foremost battery manufacturer in South Korea, announced on Wednesday that it anticipates a decline in global battery demand, likely reaching its lowest point during the first half of the year.
"The demand for batteries will probably hit its lowest during the first quarter or the initial half of the year. The company intends to strategically adjust its investment plans," stated LGES Chief Executive Kim Dong-myung during a press briefing.
He made these remarks while participating in ‘InterBattery 2025’, the nation’s key battery industry exhibition, where he also serves as chairman of the Korea Battery Industry Association (KBIA), as reported by Yonhap news agency.
Regarding the potential extension of the electric vehicle (EV) "chasm," Kim emphasized that it is crucial for battery manufacturers to be well-prepared for a forthcoming market recovery in the era of all-electric vehicles.
The CEO had previously predicted that the EV chasm might conclude as soon as 2026.
In another media session, Jung Kyung-hwan, who leads the corporate strategy department at LGES, mentioned that persistent high inflation, elevated lending rates, reduced subsidies in significant markets, and inadequate charging infrastructure pose challenges to the EV market's expansion.
Jung further noted that the next three to five years would represent a "golden period" for the company to enhance its product competitiveness, lower costs, and diversify its battery offerings.
On Wednesday, LGES introduced its latest series of 46-millimeter diameter cylindrical EV battery cells during the three-day exhibition, which runs until Friday in Seoul.
In 2020, U.S. EV manufacturer Tesla Inc. revealed plans to utilize the 4680 cylindrical model, measuring 80mm in length, in its future vehicle models.
During InterBattery 2025, South Korea's top three battery manufacturers showcased their innovative battery solutions as they gear up for the new era of electric vehicles (EVs) following the current market slowdown.
LG Energy Solution Ltd. (LGES), the largest battery company in the country, presented its new collection of 46-millimeter diameter cylindrical EV battery cells at the exhibition.
Samsung SDI also collaborated with Hyundai Motor Co. and its subsidiary Kia Corp. to showcase DAL-e and MobED, robots developed by Hyundai Motor Group Robotics LAB that are powered by the battery firm's 21mm cylindrical batteries.
