LG Energy to expand smart factory systems to N.America JVs

South Korea’s LG Energy Solution Ltd. will introduce smart manufacturing systems to all its joint venture battery plants under construction in the US and Canada, its Chief Executive Kwon Young-soo was quoted as saying. 

During his May 14-21 business trip to the US, Kwon inspected LG Energy’s factory in Michigan to check on the progress in its smart factory transformation, according to industry sources on Thursday.

The Michigan plant is LG Energy’s first US facility to transform into a digitalized manufacturing process. The world’s second-largest battery maker is expanding capacity in the US state.

Once it completes the test run of digital factory technologies at the Michigan plants, it will apply the systems to all its joint venture plants in North America.

“By 2025, we will operate eight plants in North America,” Kwon was quoted as saying in a town hall meeting with LG workers in the Michigan plant.

“To take our battery manufacturing capability to the next level, smart factory transformation is a mission to be completed without fail.”

A smart factory refers to a factory where production processes and operations are combined with digital technology, smart computing and big data to make flexible and optimizable operations.

The Michigan plant is LG Energy’s first factory built in the US and came online in 2012. It is expected to serve as a mother factory, or a control tower of LG Energy’s production lines in the US.

The LG Group arm is teaming up with General Motors Co., Hyundai Motor Group, Honda Motor Co. and the Netherlands-based Stellantis N.V. to jointly build battery plants.

They will be constructed in Arizona, Michigan, Ohio and Tennessee.

During his business trip, Kown made an onsite inspection of its JV plant under construction in Ohio with GM as well.

Write to Sung-Soo Bae and Il-Gyu Kim at baebae@hankyung.com

Yeonhee Kim edited this article.