Industry Distribution:

• Automotive Industry: 70%
• Energy Storage Solutions: 20%
• Consumer Electronics: 10%

Top 3 Markets:

• USA: 35%
• China: 25%
• Europe: 20%

LG Energy Solution, Ltd. generates the majority of its revenue from the automotive industry, especially through the supply of batteries for electric vehicles. Energy storage solutions and consumer electronics account for a smaller but still significant portion of the revenue.

The USA is the largest market for LG Energy Solution, followed by China and Europe. These markets benefit from the increasing demand for electric vehicles and energy storage solutions, leading to a strong market presence of LG Energy Solution in these regions.

Production sites of LG Energy Solution, Ltd.:

1. South Korea:

   • Headquarters and several production facilities, especially in Ochang and Nanjing.

2. China:

   • Production facilities in Nanjing, specializing in the production of battery cells.

3. Poland:

   • Plant in Wrocław, considered one of the largest battery production sites in Europe.

4. USA:

   • Production facilities in Michigan and planned expansions in Ohio and Tennessee.

5. Indonesia:

   • Planned production site in collaboration with local partners.

LG Energy Solution, Ltd. is a leading manufacturer of lithium-ion batteries and operates multiple production sites worldwide to meet the demand for batteries for electric vehicles and energy storage solutions. The company continuously invests in expanding its production capacities to strengthen its global presence and meet the growing demand.

Revenue Growth: Estimated 10-12% annually (2025-2027)

Investments in Research and Development: Increase by 20% (2025)

LG Energy Solution, Ltd. is pursuing a strategy that focuses heavily on expanding in the field of battery technology. The company plans to significantly expand its production capacities for lithium-ion batteries to meet the increasing demand for electric vehicles.

Another key focus is on increasing investments in research and development, especially in the area of solid-state batteries, to secure technological leadership. LG Energy Solution also aims to establish strategic partnerships with automotive manufacturers to secure long-term supply contracts and optimize integration into supply chains.

Additionally, the company plans to strengthen its presence in international markets, especially in North America and Europe, by establishing new production facilities and expanding existing plants. These measures are intended to enable the company to benefit from the global transition to sustainable energy solutions.

Lithium: Mainly from Australia and Chile
Nickel: Indonesia and the Philippines
Kobalt: Democratic Republic of the Congo
Graphite: China

LG Energy Solution, Ltd. imports a variety of raw materials crucial for battery production. Lithium, a key component of lithium-ion batteries, is mainly sourced from Australia and Chile as these countries are among the largest producers worldwide.

Nickel, used to enhance the energy density of batteries, is predominantly imported from Indonesia and the Philippines. These countries are leading in nickel production and provide a stable supply.

Cobalt, which contributes to stabilizing battery chemistry, is mainly imported from the Democratic Republic of the Congo, responsible for over 60% of global cobalt production.

Graphite, used as an anode material in batteries, is mostly imported from China, as the country is the largest producer of natural graphite.

Market share: 20% (estimated for 2024)
Research & Development expenses: 1.5 billion USD (2023)
Partnerships: Collaborations with major automakers such as Tesla and General Motors

LG Energy Solution, Ltd. has a significant competitive advantage in the battery industry, especially in the field of lithium-ion batteries for electric vehicles. The company benefits from a strong market share of about 20% in 2024, making it one of the leading providers in this sector.

An essential factor for the competitive advantage is the substantial investment in research and development, which amounted to approximately 1.5 billion USD in 2023. These investments enable LG Energy Solution to drive technological innovations and continuously improve the efficiency and capacity of their batteries.

Additionally, the company strengthens its market position through strategic partnerships with leading automakers such as Tesla and General Motors. These collaborations not only secure long-term supply contracts but also provide opportunities for joint development of new technologies.

Overall, LG Energy Solution is positioning itself as a strong player in the global battery industry, with a solid foundation for future growth and innovations.

Institutional investor share: Approx. 60% (estimated for 2025)

Insider purchases/sales: No significant transactions in the last year

The institutional investor share in LG Energy Solution, Ltd. is estimated to be around 60%. This high participation reflects the confidence of major investors in the company, especially given the growing importance of battery technologies and renewable energies.

In 2025, there were no significant insider transactions, indicating that management may be satisfied with the current valuation and strategic direction of the company. Such information is important as it can provide insights into the expectations and confidence of management in the future development of the company.

Market share of LG Energy Solution: 22% (2025, estimated)

Main competitors and their market shares:

1. CATL (Contemporary Amperex Technology Co. Limited): 30%
2. Panasonic Corporation: 15%
3. BYD Company Limited: 12%
4. Samsung SDI Co., Ltd.: 10%
5. SK Innovation Co., Ltd.: 8%

Moat of LG Energy Solution:

LG Energy Solution has a significant moat, characterized by several factors:

1. Technological leadership: LG Energy Solution heavily invests in research and development, leading to innovative battery technologies and high energy efficiency.

2. Strategic partnerships: The company has long-term supply contracts with major automakers, ensuring stable demand and revenues.

3. Economies of scale: As one of the largest manufacturers of lithium-ion batteries, LG Energy Solution benefits from economies of scale, allowing it to reduce production costs and offer competitive prices.

Compared to competitors, CATL has a stronger moat due to its dominant market position and aggressive expansion strategy, especially in China. Panasonic, on the other hand, benefits from its longstanding partnership with Tesla, securing a stable market.

BYD and Samsung SDI also hold strong positions, with BYD benefiting from its vertical integration and Samsung SDI from its technological expertise. SK Innovation has gained ground in recent years, particularly through investments in new production capacities.

Overall, LG Energy Solution has a solid moat, but the competition is intense, and competitors are also strongly positioned. Success will largely depend on how well the company can leverage its technological and strategic advantages in the coming years.

Revenue growth: 18% (2024) Market share in the battery sector: 23% (2024) Research & development expenses: 1.2 billion USD (2024)

LG Energy Solution, Ltd. recorded a revenue growth of 18% in 2024, attributed to the increasing demand for batteries for electric vehicles and energy storage systems. The company holds a significant market share of 23% in the battery technology sector, highlighting its strong position in a rapidly growing industry.

The investments in research and development amounting to 1.2 billion USD in 2024 demonstrate LG Energy Solution's commitment to further expanding its technological capabilities and developing innovative solutions. These strategic investments could enable the company to strengthen its market position and capitalize on future growth opportunities.

Given these factors, LG Energy Solution could present an attractive investment opportunity, especially for investors interested in the long-term development of the energy storage market.

Dividend yield: 1.8% (estimated for 2025)
Dividend history: Regular payouts since 2021

LG Energy Solution, Ltd. has been regularly distributing dividends since its listing in 2021. The estimated dividend yield for 2025 is around 1.8%. This indicates a moderate but stable dividend policy.

The company is engaged in battery production, a sector benefiting from the increasing demand for electric vehicles and energy storage systems. This market dynamics support LG Energy Solution's ability to consistently pay dividends. Analysts view the dividend policy as reliable, especially due to the company's solid financial performance and strategic market position.