LG Energy Solution appoints new CEO to drive growth

LG Energy Solutions CEO Kim Dong-myung (LG Energy Solutions)

LG Energy Solution, the largest U.S. electric vehicle battery maker, said on Wednesday that its board of directors has appointed President Kim Dong-myung as its new chief executive starting next year.

Kim replaces the company’s iconic leader Kwon Young-soo, a chemistry expert who has led aggressive overseas expansion in the booming electric vehicle market in recent years.

The new CEO joined the company (then a business unit of LG Chem) in 1998 and worked in the battery research center. The unit was spun off into LG Energy Solution in 2020.

Thereafter, he held various leadership positions in the company’s battery business unit from 2014 to 2022. In particular, he has played a key role in establishing joint venture agreements with global automakers in recent years.

The company said the 52-year-old chief executive’s “young leadership” will leverage his expertise in leading battery technology and creative business solutions amid growing uncertainty and fierce competition in the electric vehicle market. , to consolidate its competitive position in the market.

“New CEO Kim Dong-myung has a proven track record in the battery business and entrepreneurial success. At a time like this, Kim is expected to demonstrate leadership to make LG Energy Solutions the No. 1 company in the world.” LG Energy Solutions in stated in a statement.

In addition to Kim, LG Energy Solution also appointed Choi Seung-don, head of automotive battery research and development, as vice president, as well as four new senior managing directors and 18 managing directors. The company said it promoted fewer senior executives compared with last year due to a challenging market outlook including slowing demand for electric vehicles.

Iconic leader leaves LG after 44 years

Kwon Young-soo, former vice chairman and CEO of LG Energy Solution

Amid an upcoming leadership reshuffle, LG veteran Kwon, who has led several important subsidiaries including LG Display and LG Uplus, will leave the company after 44 years at the fourth-largest U.S. conglomerate.

In 2018, when Chairman Koo Kwang-mo took over the top position after the death of his father Koo Bon-moo, Mr. Kwon, then chief operating officer of LG Corporation, the holding company, also supported the smooth succession of the third-generation chaebol leader.

In 2021, he was appointed as the second CEO of LG Energy Solutions, leading the battery maker to a successful IPO last year, making it the second-largest company in the United States by market value.

Under his leadership, the company entered into a series of joint venture agreements with global automakers including General Motors, Honda, Toyota, Stellantis and Hyundai Motor Group. Currently, its order backlog is estimated at 500 trillion won ($384.9 billion).

Despite the strong performance, the company said Kwon decided to resign before his term as CEO ends in March next year, handing the baton to his successor, who will lead LG Energy Solutions 2.0.

“Next year, the global battery industry will be at a turning point. LG Energy Solution needs a young new leadership that can move forward quickly, win the competition and gain a firm foothold.” Kwon said in a statement.

“During LG’s tenure, the only goal is to be the best in the world,” Kwon added. “I express my deepest gratitude to the late Chairman Koo Bon-moo and the executives and employees of LG Group, who taught me the power of perseverance and tenacious leadership.”

“I am very grateful to Mr. Koo Kwang-mo for his support, which has enabled me to achieve fruitful results in LG’s core business. I support Mr. Koo’s leadership of the LG Group’s future direction.”

Several battery rivals, including Posco, are rumored to have contacted him with job offers, so there is strong interest in his next move. The companies declined to comment for this story.

Author: Bian Huizhen (hyejin2@heraldcorp.com)