LG Energy Solution Begins Second Phase of Gwacheon R&D Campus Expansion
LG Energy Solution is consolidating its research and development (R&D) capabilities in Gwacheon. The company is expanding its R&D scope from battery packs and battery management systems (BMS) to materials.
LG Energy Solution has completed the first phase of expansion work at its Gwacheon R&D Campus and began the second phase this month, according to industry sources on Sept. 16. The company plans to obtain approval for use of the expanded building by the end of 2028 and begin operations in 2029. It has been conducting preliminary construction and site preparation for the campus expansion since early last year.
The second phase, which began this month, involves construction of the structural framework for a new research building. Xi C&A is handling construction. Xi C&A has also participated in construction projects for LG Energy Solution's Ochang Energy Plant and plants in Nanjing, China, and Poland.
LG Energy Solution decided in late 2024 to expand the Gwacheon campus. The company needed additional research space as it broadened its research scope from battery packs and BMS to materials. The site opened in 2015 as an R&D base before LG Chem spun off its battery business.
Administrative procedures for the expansion were completed last year. LG Energy Solution reached a final agreement with Gwacheon City in October last year following preliminary negotiations on expanding the research facilities. Gwacheon City agreed to pursue changes to its urban management plan needed for the expansion, while LG Energy Solution agreed to provide more than 70 billion won to the city through public contributions and land donations.
Under the construction schedule, structural work on the new research building is expected to be completed by March 2028. The building will have three basement levels and seven above-ground floors, with a total floor area of about 22,425 square meters. Following interior facility work, R&D equipment will be brought in sequentially starting in June that year. Commissioning and finishing work will begin in September, with approval for use targeted for the end of December. The building will be used as research space starting in 2029.
LG Energy Solution operates R&D institutes in Daejeon, Gwacheon and Magok in Seoul. It also uses LG Electronics' Seocho R&D Campus as research space. Battery technologies developed at the research facilities are tested for mass-production feasibility on pilot lines before being applied to actual production. A key site is the Ochang Energy Plant. LG Energy Solution is building pilot lines there for all-solid-state batteries and sodium-ion batteries to develop process and mass-production technologies for next-generation batteries.
The company is also expanding its R&D infrastructure overseas. LG Energy Solution's Nanjing subsidiary in China established a materials research facility inside an existing battery plant this year. The facility is equipped to analyze and test battery raw materials and samples to study material properties and their performance in battery applications.
LG Energy Solution holds Battery Tech Conferences (BTC) in South Korea and overseas each year to recruit master's and doctoral-level talent. CEO Kim Dong-myung has attended BTC events since last year as part of efforts to recruit researchers. The company is also expanding next-generation battery research through joint research centers with the University of California, San Diego (UCSD), the University of MΓΌnster in Germany and the Helmholtz Institute.
LG Energy Solution has increased R&D investment despite a slowdown in the battery industry. Revenue fell about 30% to 23.6718 trillion won last year from 33.7455 trillion won in 2023. Over the same period, R&D spending rose about 28% to 1.3278 trillion won from 1.0374 trillion won. R&D spending as a percentage of revenue increased to 5.6% from 3.1%. The company spent 725.9 billion won on R&D in the first half of this year.