LG Energy Solution Ltd is pivoting its strategy in response to the slowing demand for electric vehicles (EVs) by enhancing its focus on energy storage systems. The South Korean battery manufacturer has recently secured supply agreements with six humanoid robot developers, aiming to diversify its revenue sources following a challenging fourth quarter. The source notes that this shift could position the company more favorably in the evolving market landscape.
U.S. EV Demand Forecasts
In light of analysts' forecasts indicating that U.S. EV demand will remain subdued until next year, LG Energy is taking proactive measures to boost its production capabilities. The company plans to increase its energy storage system output from 36 GWh to over 60 GWh, with a goal of securing orders totaling at least 90 GWh this year.
Investment in Solid-State Battery Technology
Furthermore, LG Energy is not abandoning the EV market entirely. The company is investing in the development of solid-state battery technology and is set to introduce new battery models tailored for various applications, including humanoid robots, by 2030. This strategic shift underscores LG Energy's commitment to maintaining a competitive edge in the evolving landscape of energy solutions.
The European Union has recently explored a new trade policy regarding Chinese electric vehicles, which contrasts with LG Energy Solution's shift towards energy storage systems amid declining EV demand. For more details, see EU trade policy.
