LG Energy Solution said while a temporary slowdown of the global EV market growth is expected in 2024, it predicts the global EV market to hit mid-20% growth this year.
Factors include a North American low to mid-30% market growth forecast.
Announcing its Q4 and 2023 full-year earnings results, the South Korean company said it plans to improve the quality of high-nickel (Hi-Ni) NCMA batteries in the premium EV segment. For mainstream EVs, it will develop high-voltage mid-nickel NCM and LFP batteries.
It plans to produce lithium-sulfur batteries by 2027, it said. The company also plans to develop dry electrodes.
In mobility and IT batteries, the company said its aim is market leadership through successful mass production of 46-series batteries in the second half of 2024. Its LFP battery business began production late last year and ESS system integration will be expanded.
For the full year, it reported ₩33.7 trillion ($25.3 billion) in consolidated revenue and ₩2.2 trillion ($1.5 billion) in operating profit. This represents a year-on-year increase of 31.8% and 78.2% respectively, it said.
Last year saw the company’s full-fledged operation in North America, with the ramp-up of its GM joint venture (Ultium Cells) plant in Ohio, as well as investments in a stand-alone Arizona production facility for cylindrical and ESS batteries. A second joint venture with Hyundai Motors and supply agreement with Toyota diversified the customer base.
LGES referred to its “first-mover advantage” in North America. It has eight production facilities operating or under construction there.
It sees consumer demand and battery prices declining. It said automakers’ aggressive EV price cuts and strong willingness to launch mid- to low-end EV models is likely to have a positive impact in improving consumer demand.
A prolonged decline in metal prices is also expected to lower automakers’ battery costs and trigger increase in battery re-stocking.
LGES said it would continue cost-control measures, and invest in smart factory technology and value chains. Estimated capacity eligible for the IRA tax credits this year will be around 45~50GWh, more than double last year, it said.
