LG Energy Solution seeks sustainable growth with subcontractors

LG Energy Solution (LGES) said Monday that it has implemented various measures to enhance the competitiveness of its subcontractors and ensure sustainable growth with them.

The company emphasized its commitment to strengthening cooperation with subcontractors to navigate business uncertainties and solidify its status as the world's leading battery manufacturer.

To achieve these goals, LGES has expanded its support program to include both domestic and overseas subcontractors, focusing on improving productivity and quality.

According to the battery maker, this program not only enhances subcontractors' cost competitiveness through short-term projects but also helps them localize value chains and develop new technologies through long-term initiatives.

Financial support is another key pillar of LGES' subcontractor growth strategy.

In 2020, the company established a 150 billion won ($102 million) fund to provide subcontractors with low-interest loans, enabling them to invest in facilities and cover operational costs.

Before the Lunar New Year and Chuseok holidays, LGES also made early payments to its subcontractors, helping them manage cash flow for raw material purchases and employee bonuses. Additionally, the company introduced a price-adjustment system to share the burden of rising raw material costs with its subcontractors.

To ensure fair transactions, LGES has established a committee to review the legality of its contracts with subcontractors.

For the employees of its subcontractors, the battery maker offers free online training in business, IT, leadership and language skills. A dedicated recruitment platform is also in development to help subcontractors attract skilled workers.

“With our trust-based relationships with subcontractors, we will continue to drive innovation in quality, technology and productivity,” an LGES official said. (Advertorial)