• LG Energy Solution published its 2025 ESG Report, highlighting progress across AX, global ESG compliance, sustainable manufacturing, and battery resource circularity.
• The company is integrating data and AI into its battery business while expanding into lifecycle solutions and new business models such as EaaS and BaaS.

LG Energy Solution published its 2025 ESG Report in June 2026, outlining how it is integrating sustainability into battery technology, manufacturing, global operations, and long-term strategy. It covers progress in AI Transformation (AX), sustainable manufacturing, ESG governance, compliance, battery resource circularity, and efforts to strengthen competitiveness beyond battery manufacturing.

The report also reflects LG Energy Solution’s broader direction: combining its battery expertise with data, AI, and lifecycle solutions to expand beyond battery manufacturing as a “Total Solution Provider.”

Data, AI, and Resource Efficiency in Sustainable Battery Manufacturing

LG Energy Solution is applying its battery technology and mass-production expertise across automotive batteries, Energy Storage Systems (ESS), small batteries, and future mobility. Its solutions serve established applications, including passenger and commercial EVs and IT devices, as well as emerging areas such as humanoid robots, drones, and aerospace.

Data, IT, and AX are supporting this expansion across product development, manufacturing, and operations, improving operational efficiency and data-driven decision-making while creating new value across the battery business.

“We are also focused on executing AX to innovate the way we work and the way we manufacture,” said an LG Energy Solution representative. “By leveraging data and AI, we are creating an environment where employees can focus on more essential work. This represents a shift that goes beyond the adoption of technology and redefines the way we compete.”

LG Energy Solution is also using technology to advance resource efficiency. Its NMP(N-Methyl-2-pyrrolidone) recycling technology, developed at its Nanjing operations and validated through laboratory-scale testing, uses thin-film evaporation to increase the NMP recycling rate from approximately 80 percent to 97 percent. Introduced at the Ochang Energy Plant in Korea and LG Energy Solution Wroclaw in Poland in 2024, the technology supports resource-circulation practices across the company’s manufacturing network.

Strengthening ESG Governance and Transparent Disclosure

As ESG regulations and disclosure requirements evolve, LG Energy Solution is strengthening its ESG information management, governance, and compliance systems. In the first half of 2025, the ESG Committee approved the company’s ESG Information Management and Disclosure Regulation, which clarifies information responsibilities and improves legal and process reviews before disclosure.

The company is also preparing for emerging sustainability disclosure requirements. Under the current timeline, its Polish entity is expected to begin reporting under the EU Corporate Sustainability Reporting Directive (CSRD) in 2028, followed by broader company-wide application from 2029. LG Energy Solution is also preparing for disclosure requirements under standards issued by the Korea Sustainability Standards Board (KSSB). To support responsible governance, LG Energy Solution appointed an independent director as Chairman of the Board in 2025, strengthening board-centered decision-making and internal controls.

“We are establishing a transparent and responsible governance and disclosure system,” said an LG Energy Solution representative. “We aim to manage ESG risks more proactively and provide trustworthy information to stakeholders in a more transparent and timely manner.”

The ESG Committee supports these efforts by overseeing ESG management and its integration into company strategy. “The ESG Committee plans to further strengthen its oversight role in 2026 to enhance our response to ESG regulations and reinforce alignment with business strategy,” said Jin-Kyu Park, Chair of the LG Energy Solution ESG Committee.

Global Compliance and Battery Resource Circularity

As LG Energy Solution continues to expand globally, its more than 32,000-person workforce and operational network are becoming increasingly international. Approximately 63 percent of employees were based outside South Korea as of December 2025, spanning production, R&D, joint ventures, and sales across North America, Europe, and Asia.

To manage operational and compliance risks across this network, the company’s Compliance Office works with managers in 25 departments covering 12 areas, including fair trade, environmental health and safety, and information security. Annual inspections are supported by compliance checklists, while an AI-based monitoring system introduced in the second half of 2025 helps identify potential risks.

Global partnerships are also advancing the company’s resource-circulation efforts. In December 2025, LG Energy Solution established EV LOOP in France with Derichebourg. The joint venture is intended to process end-of-life batteries and manufacturing scrap. In May 2025, the company signed an agreement with Toyota Tsusho to establish Green Metals Battery Innovations (GMBI) in the United States, where black mass is expected to support the recovery of materials such as lithium, cobalt, and nickel.

Expanding Battery Value Through Services and Lifecycle Solutions

LG Energy Solution is expanding into data, services, and lifecycle management, with integrated offerings that include battery diagnostics, management software, sharing models, Energy-as-a-Service (EaaS), and Battery-as-a-Service (BaaS).

EaaS integrates generation, storage, trading, and optimization, while BaaS provides solutions across the battery lifecycle. Together, they extend LG Energy Solution’s capabilities beyond battery manufacturing toward becoming a Total Solution Provider.

LG Energy Solution is also developing data-driven solutions to support battery diagnostics, prediction, and lifecycle management. Battery Management Total Solution (BMTS), for example, is a next-generation platform that combines AI and cloud technologies to enhance battery monitoring and diagnostics. These capabilities support battery reliability, safety, and performance throughout the battery lifecycle, while creating additional value for customers.

Why Integrating Sustainability Across the Business Matters

The 2025 ESG Report illustrates how LG Energy Solution is connecting sustainability with its long-term business direction. By bringing together battery expertise, data and AI, lifecycle solutions, and resource-circulation capabilities across manufacturing and governance, LG Energy Solution is expanding the value it provides across the battery lifecycle. This approach supports the company’s transition to becoming a more sustainable, competitive Total Solution Provider.

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