With the rapid expansion of the EV industry, the battery sector is also growing by more than 30% annually, with LG Energy Solution solidifying its position as a leader and innovator in the field. This achievement is attributed to its commitment to securing the sales and stable supply of batteries and the development of battery ecosystems that enable a sustainable future. LG Energy Solution has been advancing its efforts in expanding the Battery-as-a-Service (BaaS) ecosystem and recently announced the launch of ‘Battery Lifecare’ with Hyundai Capital in Korea, the first-ever EV-dedicated financial product in the country.
The BaaS model leverages comprehensive battery data to unlock value throughout its lifecycle. With the booming EV industry, battery manufacturers view BaaS as a means to generate tangible and intangible benefits. Analyzing a battery’s entire history beyond its manufacturing and testing stages is critical for product improvement. Additionally, continuously updated battery information offers customers a superior user experience, assurance against potential accidents, a comprehensive battery usage guide, and increased trust in the battery manufacturer. The BaaS platform serves as the foundation for collecting battery usage data, transforming it into a valuable asset. Enriched by AI and structured as big data, this information facilitates accurate assessments of end-of-life batteries for potential reuse or recycling, opening new profitable business opportunities for stakeholders like Battery Lifecare.
Battery Lifecare, a financial product for EV lease and rental customers, utilizes advanced technology to calculate the residual value of batteries, which is then used to bring down customers’ monthly payments. The service was introduced to corporate customers in Korea in November, with plans for its availability to individual customers later this month.
Different from existing financial products, Battery Lifecare encourages drivers to be more responsible with their battery usage. Whereas existing financing solutions determine an EV’s value based on its mileage, Battery Lifecare evaluates the residual value of batteries to put a fairer evaluation on an EV and save people money. Furthermore, Battery Lifecare’s reward program gives customers a battery management target (My Reward Score) to aim for based on their annual contract mileage and contract length, which, if achieved, puts KRW 300,000 in their pockets at the end of their contract.
Battery Lifecare utilizes LG Energy Solution’s cloud-based battery management and evaluation as well as its cutting-edge data analysis technology. In addition, LG Energy Solution will gather extensive data on battery life, including real-time information on driving habits, charging patterns, and driving data, through a battery self-diagnosis system. Users will be able to access this information and monitor their progress through the Hyundai Capital app (individuals) or Autocare (corporate customers).
“We expect this collaboration between LG Energy Solution, renowned for its battery diagnosis solution and customer value capabilities, and Hyundai Capital, a leading auto finance company, to bring fresh innovation to the BaaS market,” said Taeyoung Kim, task leader at LG Energy Solution’s Battery-as-a-Service department.
‘Battery Lifecare’ will be expanded globally in the future so that more people around the world can adopt EVs and reap more financial benefits. LG Energy Solution is innovating the BaaS market with exceptional customer value capabilities and unparalleled technologies, and its efforts are ongoing.