• Safety diagnostics software detects battery defects with an accuracy rate of over 90%, leveraging company’s technological leadership backed by BMS development capabilities and empirical battery data accumulated over more than 20 years
• Mounted on the BMS for automobiles, the software detects abnormal signs that could lead to an issue, and is compatible with EVs equipped with batteries from other manufacturers
• Precise diagnosis and prediction of battery degradation made possible with AI and cloud technologies

SEOUL, August 21, 2024 – LG Energy Solution announced today that it is venturing into the
battery safety diagnostics software business. With interest in the safety of EVs at an all-time
high, the company has decided to explore new business opportunities and provide the best
customer value not only in battery manufacturing but also in BMS (Battery Management
System) solutions, promoting the safe use of batteries.

■ Safety diagnostics software detects battery defects with an accuracy rate of over 90%

LG Energy Solution boasts unrivaled technological leadership in the battery safety diagnosis
sector with its BMS design capabilities and empirical battery data gathered over 20 years.

With over 8,000 BMS-related patents, the company has developed a safety diagnostics
software based on empirical data obtained by disassembling and analyzing more than 130,000
battery cells and 1,000 battery modules. This reliable software has already been applied to
more than 100,000 EVs, recording an impressive detection accuracy rate of more than 90%.

Based on its leading technological prowess, LG Energy Solution’s safety diagnostics software
analyzes various battery defects including voltage drop during charging, battery tab failure,
micro internal short circuit, abnormal degradation, abnormal discharge, deviation in specific
cell capacity, and excessive lithium precipitation.

Until now, most battery diagnostics software solutions were based on technologies developed
by predicting virtual conditions, leading to low accuracy when applied in real environments.

■ Software preemptively detects abnormal signs that could lead to potential future
issues

The growing interest in the safe use of EVs highlights the importance of developing a
sophisticated battery condition management, prompting automakers to pay more attention to
the BMS’ ability to effectively measure and analyze battery information and detect various
problems in advance.

LG Energy Solution’s safety diagnostics software, which will be mounted on the automotive
BMS, will provide functions that preemptively diagnose various battery abnormalities. In fact,
it is already being applied to vehicles from nine global automakers.

Based on a safety diagnosis detection accuracy rate of over 90%, the software can detect and
alert abnormal signs indicating potential future issues, such as thermal incidents, in advance,
ensuring driver safety and peace of mind. In addition, LG Energy Solution’s software is
receiving attention for its compatibility with EVs equipped with batteries from other
manufacturers.

LG Energy Solution has decided to expand its safety diagnostics software business in
collaboration with global automakers based on its proven safety diagnosis accuracy and
accumulated technological prowess.

“Although automakers are starting to shift their attention to safety diagnosis technology, it
takes time and resources to develop and apply reliable software,” said Hyuksung Chung, Vice
President of the Business Development Group at LG Energy Solution. “LG Energy Solution
has already developed diagnostics software with capabilities that overwhelm the competition.
Backed by various battery patents and vast amounts of empirical data, this leading vehicle
software can be applied to an automotive BMS today. This move aligns with our commitment
to actively collaborate with our clients to ensure EV batteries are safe to use.”

■ Precise diagnosis and degradation prediction with 1% range error rate

In addition to a safety diagnosis function, LG Energy Solution has developed a technology that
precisely diagnoses and predicts battery degradation.

Through this technology, the software can predict a battery’s future capacity and degradation
based on data gathered on various information such as driving patterns. Based on LG Energy
Solution’s expertise in battery electrochemistry, the software has applied a battery physics
model which includes various and complex degradation mechanisms such as lithium
precipitation and degradation of cathode and anode.

The software also diagnoses battery conditions more accurately by continuously upgrading its
algorithms via AI computing technology. By continuously applying and supplementing battery
cell information from various EVs to the algorithm, the error rate of battery degradation
diagnosis has been reduced to the 1% range, top-level in the industry.

In addition, LG Energy Solution is using cloud technology to analyze vast amounts of battery
data in real time, with data from a total of 12,000 vehicles analyzed as of last year.

Also, BMS software optimized for SDVs (Software Defined Vehicle) is being developed to
target the future mobility era, where vehicles will become lifestyle platforms. By utilizing the
vehicle’s SoC (System-on-Chip) computing performance, computational capabilities can be
enhanced and more sophisticated battery algorithms can be implemented. This will also
unlock new battery services for customers by utilizing information obtained directly from the
vehicle.

LG Energy Solution has been working to strengthen its BMS capabilities in recent years
through various collaborative efforts, including its cooperation with Qualcomm Technologies
to develop advanced BMS diagnostic solutions based on SoC, and an MOU with Analog
Devices, Inc. (ADI), a global semiconductor leader, for the supply of high-performance battery
management integrated circuit and joint technology development.

“We will continue to provide irreplaceable and differentiated customer value, not only in battery
manufacturing but also in the field of BMS solutions to ensure the highest levels of safety and
performance,” said David Kim, CEO of LG Energy Solution.