Koo Kwang-mo Checks U.S. ESS Sites, Accelerates Push into the Global South

"We must secure a business foundation that will not be shaken by any external environment." (Koo Kwang-mo, chairman of LG Corporation (LG Group))
Koo Kwang-mo, chairman of LG Corporation (LG Group), has visited the United States and Brazil in succession to review the group’s businesses in two core growth pillars: energy and the Global South, or emerging markets. His trip is seen as an effort to simultaneously examine the strategy for Energy Storage Systems (ESS), which have gained prominence with the spread of artificial intelligence (AI), and for the Global South. In particular, Koo called for preemptively securing market leadership in energy infrastructure to keep pace with the rapid growth of future industries such as AI data centers and Physical AI.
■ Koo Kwang-mo reviews battery business in the U.S.
According to industry sources on the 2nd, Koo visited LG Energy Solution’s ESS SI (system integration) subsidiary LG Energy Solution Vertech in Westborough, Massachusetts, on the 30th of last month (local time). There he stressed, "In ESS, we must go beyond supplying battery hardware and build an overwhelming, market-leading position by strengthening our capabilities in providing integrated solutions that deliver high added value to customers." As demand for batteries is surging in areas such as AI data centers and Physical AI, he underscored that combining hardware and software into integrated solutions will be crucial to seizing these opportunities.
LG is aiming for qualitative growth in its battery business. In high-performance computing environments such as AI data centers, ESS are not just storage devices; they serve as critical infrastructure for optimizing power loads and ensuring stable electricity supply. Market research firms project that the global ESS market, estimated at about 300 gigawatt-hours (GWh) last year, will expand to around 750 GWh by 2030, nearly a 2.5-fold increase.
LG is reading market trends quickly and responding in advance.
LG Energy Solution has introduced lithium iron phosphate (LFP) batteries, which have emerged as the mainstream in the global ESS market, in a timely manner. In line with soaring demand in North America, it is converting five local production bases into ESS production lines. At present, LG Energy Solution is the only company producing and supplying ESS batteries in North America.
LG Energy Solution is also strengthening synergies with LG Energy Solution Vertech. Vertech possesses system integration capabilities that cover design, installation, maintenance, and software-based operation and management, all of which are core competencies in the ESS business.
■ Trip to Brazil: personally overseeing emerging markets
Alongside energy, LG sees the Global South as another key growth axis and is accelerating its push into these markets. After completing his schedule at LG Energy Solution Vertech in the U.S., Koo traveled to Brazil, where he visited LG Electronics’ manufacturing subsidiary in Manaus and local retail stores to discuss market strategy. Brazil, which accounts for about 40% of Latin America’s total Gross Domestic Product (GDP), is a pivotal country in the Global South.
LG Electronics, one of the group’s core affiliates, has shown particularly strong growth in emerging markets centered on the Global South. According to its annual report, combined sales from overseas subsidiaries in five Global South countries—India, Vietnam, Thailand, Indonesia, and Brazil—reached 17.0902 trillion won last year, up 4.6% from 16.3365 trillion won a year earlier.
The new refrigerator plant that LG Electronics is building in Paraná State in southern Brazil will begin full-scale operations in July this year. It is positioned as a strategic base to overcome high import restrictions and tariff barriers and to strengthen the company’s dominance in Latin America. By tailoring its approach to a market characterized by strong protectionism, LG aims to respond swiftly to domestic demand in Brazil while improving logistics efficiency.
soup@fnnews.com Im Su-bin Reporter