File photo of the LG logo. [Photo/Agencies]
South Korean battery maker LG Energy Solution expects to further explore the vast potential in China's fast-growing electric vehicle industry, after building over one third of its global production capacity in the country.
Global annual sales of electric vehicles are expected to reach 10 million units in 2025 and 25 million units in 2030, said Park Jin-yong, a senior executive at the company that spun off from LG Chem in late 2020.
"Without any doubt, China is leading the market growth," said Park at the China Auto Forum held in Shanghai from June 17 to 19.
LG Energy Solution has four global bases with a total production capacity of 130 GWh, and its customers include such companies as Tesla. Park said 45 GWh of its global production capacity is in China.
China has been the world's largest market for electric cars and plug-in hybrids since it overtook the United States in 2015.
Statistics from the China Association of Automobile Manufacturers show that there were already 5.8 million such vehicles on Chinese streets by the end of May, accounting for roughly half of the global total.
"We would like to contribute to China's EV industry and market evolution," said Park.
He said the company is also developing new products including lithium-sulfur batteries.
They have better energy density than lithium-ion batteries and are cheaper, and they are deemed suitable for drones and aircraft for urban air mobility.
"LG Energy Solution has currently achieved 450 Wh/kg, and aims to commercialize products with 500 Wh/kg by 2023 and 600 Wh/kg by 2025," said Park.