LG Group Chairman Koo Kwang-mo urged LG affiliates to enhance their involvement in the energy infrastructure sector for artificial intelligence (AI), emphasizing the significance of uniting software and hardware.
Koo expressed those comments while visiting LG Energy Solution Vertech, a company specializing in energy storage system (ESS) software in Massachusetts, on Monday.
"We need to establish a business base that stays strong in the face of external unpredictability," he stated. We must focus on advancing beyond merely providing ESS battery hardware to enhance our abilities in integrated solutions with high added value to secure a leading market position," says Koo.
The need for future battery technologies is growing swiftly with the rise of AI data centers and physical AI, as Energy Storage Systems are becoming essential infrastructure in advanced computing settings to enhance power management and guarantee a reliable supply. Within this setting, the fusion of hardware and software capabilities is anticipated to serve as a crucial competitive advantage in achieving market dominance.
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In this context, Koo’s trip to Vertech is seen as LG aiming for qualitative expansion in its battery sector to capitalize on prospects within the AI energy infrastructure arena, emphasizing integrated solutions.
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LG Energy Solution is meeting market needs by launching lithium iron phosphate batteries for its ESS offerings and shifting its five North American production plants, including those in Michigan, Tennessee, and Ontario, to concentrate on ESS. At present, it is the sole company manufacturing and providing ESS batteries in North America.
Vertech is forming synergies with LG Energy Solution as well. The organization possesses system integration abilities that encompass essential elements of the ESS industry, such as design, installation, upkeep, and software-driven operational management.
Following his visit to Vertech, Koo went to Brazil to tour LG Electronics' manufacturing site in Manaus, where he engaged with staff about regional strategies.
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Brazil represents nearly 40 percent of the total gross domestic product of Central and South America, positioning it as a crucial market in LG Electronics’ strategy for emerging economies.