The stock market is continuously picking up positive signals toward improvement in LG Energy Solution's performance in the second half of the year. Although operating losses are expected to fall short of market expectations in the second quarter, the prevailing assessment is that this is only a temporary adjustment phase. What is particularly noteworthy is the full-fledged turnaround of the energy storage system (ESS) business. As demand for ESS increases explosively, especially in the North American market, new production lines are increasing their operating rates every quarter, and this is expected to be a key driver of company-wide profitability. In addition, as the Polish plant's operating rate returns to normal in line with the recovery in demand in the European electric vehicle market, a buffering effect in the performance of the large battery division is expected.

LG Energy Solution's growth strategy is gaining further strength through solid alliances across the value chain. A representative example is our partnership with Yulchon Chemical. Yulchon Chemical, famous for its ramen packaging materials, has succeeded in domestically producing high-level battery pouch films and is significantly increasing its production capacity in line with the expansion of LG Energy Solutions' ESS business. This means that we go beyond simply supplying parts and build an ecosystem that grows together with strategic partners. Securing a stable supply chain and internalizing technology are powerful weapons that LG Energy Solutions can have in an uncertain global supply chain environment, and this cooperation model is likely to expand to a wider area in the future.

What is as notable as hardware innovation is the talent acquisition strategy directly led by CEO Kim Dong-myeong. The ‘Battery Tech Conference (BTC)’ held recently in Chicago was more than a simple recruitment event, but was a venue to declare the future value pursued by LG Energy Solutions. President Kim shared his experience as a person with a doctoral degree in materials engineering and presented his vision to move beyond a ‘battery company’ to an ‘energy platform company’ to master’s and doctoral level talents. Inviting a large number of outstanding talents in the fields of artificial intelligence (AI), physical AI, and big data shows the management's deep insight that future battery technology can only be completed when combined with software capabilities.

The ‘energy platform’ that LG Energy Solutions is envisioning means evolving beyond simply selling batteries to store electricity into an infrastructure company that connects and manages all the energy in the world. Batteries have now become a key asset that goes beyond powering transportation and supports data centers and power grids. Amid these changes, LG Energy Solutions seeks to establish itself as a key partner in resolving bottlenecks in AI data centers based on its ESS technology. This attempt to break down the boundaries between technology, talent, and industry can be evaluated as a process of overcoming the temporary slump in the electric vehicle market and completing structural improvements for sustainable growth.