LG New Energy, which was spun off from LG Chem’s battery business, is supplying electric vehicle batteries to many manufacturers such as Tesla and General Motors. As the demand for electric vehicle batteries increases, they are also investing in the construction of new batteries.
In addition to investing in new factories, LG New Energy is also improving production efficiency. South Korean media said in the report that the ultimate goal of LG New Energy is to automate the production line, standardize battery production, and then improve production efficiency.
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The automation of LG’s new energy battery production line and the standardization of battery production was led by the new CEO, Quan Yingshou, who was appointed on November 1 last year. South Korean media reported that since June, CEO Quan Yingshou has held a high-level management meeting with the senior management of major partners. LG New Energy Chief Quality Officer Kim Soo-ryung and Chief Digital Officer Kyungsuk Pyun also participated.
During the meeting between Quan Yingshou and other LG New Energy executives and the senior management of major partners, the main topics discussed were equipment standardization, IP digitization, and operation. According to sources, their main purpose is to ensure production efficiency and achieve automation.
The source also revealed that Quan Yingshou hopes that the precision of their battery production can reach the level of semiconductors and panels. Over the past few decades, semiconductor and panel makers have invested fewer operators in each production line, and new production lines can quickly and effectively improve production efficiency.
The sources also mentioned in the report that LG New Energy, the world’s second-largest electric vehicle battery manufacturer, mainly relies on its experience in battery production. The production line engineers or operators are different, and the yield and production efficiency will be different.
The sources said in the report that LG New Energy believes that if its yield rate can exceed 90%, improving production efficiency can accelerate its growth.
