More intelligent, leaner and cleaner battery production
15 December 2021
Siemens and LG Energy Solution (LGES) signed a Memorandum of Understanding (MoU) to increase cooperation in the field of battery manufacturing, particularly the digitisation of the production process.
Under the terms of the agreement, which was signed by Cedrik Neike, Member of the Managing Board of Siemens AG and CEO Digital Industries and Young Soo Kwon, CEO of LG Energy Solution and at LGES’s headquarters in Seoul, the two companies plan to take steps to promote the process of battery manufacturing intelligence at LGES production facilities worldwide.
“We believe the partnership with Siemens AG will efficiently promote LG Energy Solution’s digitised manufacturing processes, ultimately enabling LGES to provide the finest services to our clients,” said Young Soo Kwon, CEO of LG Energy Solution. “The process of manufacturing intelligence in producing batteries is becoming a critical factor, especially as LGES continues to advance the quality of its products while expanding production base worldwide.”
“The future of carbon-neutral mobility requires high-performing batteries. They are at the heart of the electric vehicle market. Siemens and LG ES will work on quantum leap in battery manufacturing. We are proud that technology from Siemens enables this momentous transformation,” said Cedrik Neike, Member of the Managing Board of Siemens AG and CEO Digital Industries. “With this cooperation, we underscore Siemens’ positioning as a focused technology company. Joining forces with the world’s leading battery manufacturer allows us to showcase our deep domain know-how in the battery market.”
Through this strategic collaboration, LGES will be able to implement smart battery manufacturing processes at global factories. The partnerships’ first line of collaboration will be realised at Ultium Cells LLC, a joint venture of LG Energy Solution and General Motors, located in Tennessee, which is expected to begin production in 2023. Furthermore, the collaboration will allow LGES to cut back on Carbon footprint in its entire supply chain management, as it aims to boost sustainability in its business operations.
As a supplier in the field of automation and industrial software, Siemens offers a comprehensive digital enterprise portfolio and domain knowledge in the battery industry. This allows LGES to accelerate its digital transformation strategy. In addition, Siemens AG will contribute to the development of the rapid growing battery industry by solidifying its position as a technology partner for the advancement and efficiency of battery manufacturing technology.
The companies will also collaborate on building a digital twin roadmap to ensure stable operations at facilities to offer first-rate quality products at the right time. Together, the companies will also develop training programs within the Institute of Battery Technology (IBT) for academic students set to work for LGES.
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