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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] LG Energy Solution (LGES) has implemented a company-wide crisis management system to address growing uncertainties in the global battery market.
This proactive move is seen as a response to prolonged challenges, including the “EV chasm” (a temporary slowdown in electric vehicle demand) and shifting battery policies in major global markets.
According to industry reports on Sunday, LGES announced its decision to embrace crisis management in a message jointly issued by CFO Lee Chang-sil and CHRO Kim Ki-soo on October 20. The statement emphasized the need for “proactive measures at the organizational level.”
The company is already engaged in activities aimed at overcoming the crisis. Key initiatives include:
Fundamental reassessment of investment and cost structures.
Expanding revenue through additional orders in key business sectors, including electric vehicles.
Enhancing business competitiveness by adopting new form factors, such as the 46-series batteries.
Optimizing assets through enhanced compatibility across global production facilities and potential asset sales.
In addition to these efforts, LGES is focused on improving operational efficiency. The company believes that cost-saving measures are critical to achieving meaningful profitability.
While LGES has not disclosed detailed plans for its crisis management strategy, reports indicate measures such as requiring executives to fly economy class for overseas trips under eight hours and promoting virtual meetings to reduce travel expenses.
The company also plans to limit new hiring, except in certain new business and technology sectors, and will instead focus on reallocating internal resources to maximize organizational efficiency.
These actions reflect LGES’s strategic commitment to navigating current market challenges while reinforcing its long-term competitiveness.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
