LG Energy, SK On to raise yields with smart factory solutions

They are hiring data experts as top executives to secure better production yields by making decisions based on data, not engineers

Employees at LG Energy Solution’s US factory check batteries (Courtesy of LG Energy Solution)
Employees at LG Energy Solution’s US factory check batteries (Courtesy of LG Energy Solution)
Hyung-Kyu Kim and Han-Gyeol Seon 2
May 25, 2022 (Gmt+09:00) khk@hankyung.com
Batteries

LG Energy Solution Ltd. and SK On Co., the world’s No. 2 and No. 5 electric vehicle battery makers, plan to adopt smart factory solutions to increase the amount of non-defective products at their overseas factories.

Those South Korean battery producers created a chief data officer (CDO) position and hired top industry experts for the post to develop solutions based on manufacturing data, industry sources said on Wednesday.

SK On, a subsidiary of SK Group’s energy unit SK Innovation Co., last month appointed Lee Kang-Won, former head of cloud technology at SK Telecom Co., as its CDO. Lee is set to focus on the development of smart factory solutions based on artificial intelligence and robots.
SK On CDO Lee Kang-Won
SK On CDO Lee Kang-Won


Lee worked on the research and development of software and advanced development of AI semiconductors for the group’s mobile carrier. Prior to joining SK Telecom, he led a team of researchers in networking systems and analytics at IBM Watson Research Center.

“SK Telecom is regarded as the affiliate with the most advanced data technologies,” said an industry source. SK Group Chairman Chey Tae-won set a business direction for affiliates that are not based on information and communication technology (ICT) to use AI and data for business decisions, prompting SK On to appoint Lee as its CDO, the source added.

In February, LG Energy scouted Pyun Kyungsuk from US chipmaker Nvidia Corp. As CDO, Pyun is driving the battery maker’s effort to transform all of its global manufacturing facilities into smart factories.

He was a principal data scientist for Nvidia after working for HP Inc. and Samsung Electronics Co.

TO IMPROVE YIELDS

Smart factory solutions improve battery makers’ yields, or the percentage of non-defective items of all produced items. The yields at battery plants are often volatile given the varying skills of engineers

“It is well known in the industry that LG Energy had difficulties in raising yields for years after opening the Poland plant, its first global production base,” said another industry source.

LG Energy and SK On stepped up their efforts to prevent such volatility by adopting solutions that allow decision-making based on data as they have been rapidly expanding overseas facilities.

Smart factories are likely to enhance their price competitiveness.

“Many automakers recently requested such a switch to secure stable yields,” said the other industry source.

LG Energy was known to have hired many experts in AI, smart factory and big data sectors among about 2,000 new employees last year, according to sources.

Write to Hyung-Kyu Kim and Han-Gyeol Seon at khk@hankyung.com
Jongwoo Cheon edited this article.

LG Energy begins joint research on smart factory tech with elite institute

LG Energy begins joint research on smart factory tech with elite institute

LG Energy Solution makes up more than 20% of the global EV battery market LG Energy Solution Ltd. and Pohang-based Research Institute of Industrial Science and Technology (RIST) announced Wednesday they will embark on joint research for smart factory technology. POSCO founded RIST in 1987

SK On to build $2.3 bn EV battery plant for Hyundai in US

SK On to build $2.3 bn EV battery plant for Hyundai in US

SK On’s battery plant in the US state of Georgia under construction (Courtesy of SK Innovation) SK On Co., the world’s fifth-largest electric vehicle battery manufacturer, plans to build a new US factory to supply batteries to a planned EV plant of Hyundai Motor Co. there to expand

LG Energy to spend more on battery capacity expansion

LG Energy to spend more on battery capacity expansion

LG Energy Solution’s staffs showcase a long cell battery it develops (Courtesy of LG Energy Solution) LG Energy Solution Ltd., the world’s second-largest electric vehicle battery maker, plans to spend more on global capacity expansion than initially projected as the South Korean com

LG Energy, Stellantis to build $4.1 billion battery plant in Canada

LG Energy, Stellantis to build $4.1 billion battery plant in Canada

Stellantis COO Mark Stewart (left) and LG Energy's advanced automotive battery division chief Kim Dong-myung The world’s second-largest battery maker LG Energy Solution Ltd. and multinational automaker Stellantis N.V. have agreed to build a $4.1 billion electric vehicle battery plant in O

SK On, Ford to set up battery JV in Turkey for Europe

SK On, Ford to set up battery JV in Turkey for Europe

(Courtesy of Ford) South Korean battery maker SK On Co. and Ford Motor Co. will set up a joint venture to produce electric vehicle batteries in Turkey with a local company as the US automaker plans to launch new EVs in Europe. SK On, the world’s No. 5 battery maker, announced on Mond

SK On aims to dominate global battery market by 2030

 SK On aims to dominate global battery market by 2030

SK On CEO Jee Dong-seob SK On Co. is on track to become the world’s No. 1 battery maker by 2030, the company said on Sunday. During an interview with the in-house channel SKinno News, CEO Jee Dong-seob said that blueprint is not a faraway dream but a planned future.Last October, SK

LG Energy to spend $1.7 bn to hike Michigan battery capacity fivefold

LG Energy to spend $1.7 bn to hike Michigan battery capacity fivefold

LG Energy Solution's EV battery plant in Holland, Michigan The world’s second-largest electric vehicle battery maker LG Energy Solution Ltd. is spending $1.7 billion to expand its battery production capacity in Holland, a city in the US state of Michigan, by fivefold.The South Korea-based

LG Energy, GM to build $2.6 bn battery plant in Michigan

LG Energy, GM to build $2.6 bn battery plant in Michigan

LG Energy’s Head of advanced automotive battery business Kim Dong-myung (left) and GM Chair and CEO Mary Barra (Courtesy of LG Energy) LG Energy Solution Ltd. and General Motors Co., plan to build the third US electric vehicle battery plant in Michigan with a $2.6 billion investment to me