LG Energy Solution, a Korean secondary battery maker, has signed a MOU or memorandum of understanding with Siemens of Germany to cooperate to build up a smart factory system.

The MOU is to digitalize the secondary battery maker’s global production facilities to make them more intelligent, leaner and cleaner, rebuilding their operation processes around the German smart factory equipment and solution makers’ enterprise solution for battery manufacturing.

Under the terms of the MOU, the first factory to digitalize is a Tennessee, U.S.-based EV battery production facility of Ultium Cells LLC, a JV between LG Energy & Solution and General Motors.

The factory is set to begin production in 2023.    

The MOU calls for the two companies to take steps to make the process of battery manufacturing intelligent and smart at LG’s all global production facilities taking advantage of its Digital Enterprise portfolio for the battery industry.

On top of that, the collaboration will allow LG to cut back on carbon footprint in its entire supply chain management system, as it aims to boost sustainability in its business operations.

The MOU was signed on Dec. 14 between Cedrik Neike, member of the managing board of Siemens AG and CEO with Digital Industries and Kwon Young Soo, CEO with LG Energy Solution.

“We believe the partnership with Siemens AG will efficiently promote LG Energy Solution’s digitized 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.”

LG Energy Solution is a spin-off from LG Chem. The split-off is now operating secondary battery manufacturing facilities in Korea, Nanjing, China, Wroclaw, Poland, and Holland, U.S.

Its Springfield, U.S. factory is scheduled to come online by 2023.            

As a leading 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.