LG Energy Solution and Siemens: Cooperation in Battery Production

LG Energy and Siemens signed a Memorandum of Understanding to cooperate on battery production. According to LGES, this involves collaboration "in the field of battery manufacturing, particularly the digitalization of the production process." Siemens board member Cedrik Neike, who is also CEO of the Digital Industries division, traveled to the LGES headquarters in Seoul for the signing of the memorandum of understanding. The cooperation aims to make the processes in battery cell manufacturing smart.

This strategic collaboration aims to implement intelligent battery manufacturing processes in LGES's factories with advanced techniques. Moreover, the cooperation should reduce the CO2 footprint in overall supply chain management. The first production line incorporating the cooperation will be established in the second Ultium Cells battery cell factory in Spring Hill in the US state of Tennessee. Ultium Cells is a joint venture between General Motors and LGES. Production is expected to start in 2023.

According to Cedrik Neike, batteries are "the heart of the electric vehicle market:

“Siemens and LGES will work on a major leap forward in battery manufacturing.”

Young Soo Kwon, CEO of LG Energy Solution, aims to drive efficient digitalized manufacturing processes with Siemens' know-how. He commented on the joint venture:

“The process of manufacturing intelligence in battery production will become a critical factor, especially as LGES continues to improve the quality of its products while expanding its production base worldwide.”

What does this mean?

For LG and Siemens (and thus GM), the joint venture should provide a win-win situation – especially as it brings more efficiency to the production of this growing market.