With the increasing demand for electric vehicles (EVs) and energy storage systems (ESS), ensuring the quality and safety of battery products has become more critical than ever. LG Energy Solution is addressing these market demands by enhancing product quality and safety through a robust quality management system. In this episode of “Ask Anything, LG Energy Solution Will Answer,” we explore how LG Energy Solution is committed to its high-quality standards.
LG Energy Solution has implemented a quality management system that complies with international standards such as IATF 16949 and ISO 9001, across its global production facilities and R&D centers.
This system strengthens product quality and safety. Annual company-wide internal audits are conducted to ensure compliance with standards. As a result, all production plants achieved full international quality certification by April 2024. LG Energy Solution continues to manage and improve these systems to meet the needs of customers and stakeholders.
Furthermore, LG Energy Solution has established its own quality assurance framework, the Product Quality Planning Process that follows stricter internal guidelines than global standards. Applied across all production plants, this framework preemptively identifies and mitigates risks, ensuring high performance, safety, and reliability from raw material procurement to final product shipment. Additionally, dual-sourcing strategies for suppliers help reduce potential risks that can arise from diverse customer requirements.
Employee training programs foster awareness of quality and safety. Topics include quality management, product safety, reliability, statistics, and global regulations. Quality professionals receive specialized training and hands-on practice to enhance expertise, ensuring continuous improvement in quality management capabilities.
Alongside its quality management system, LG Energy Solution has established a company-wide crisis management framework to effectively address potential quality risks.
This framework identifies and categorizes risks based on their nature and root causes, employing strategies such as △Crisis Management, △Business Continuity Management (BCM), and △Risk Management. Key product quality and safety risks, in particular, are closely monitored and proactively managed.
For unforeseen events, the company has implemented a Business Continuity Management System (BCMS) to maintain product and service quality while ensuring timely delivery to customers.
LG Energy Solution has obtained and renewed ISO 22301 certification and conducts regular audits across all production plants to meet certification standards. As such, the company is committed to validating system effectiveness and making continuous improvements.
To tackle material supply issues, LG Energy Solution has developed a system that classifies emergencies into categories such as natural disasters, accidents, management issues, and special situations. The company manages these situations through clear reporting structures, emergency response teams, and detailed action plans to minimize damage and prevent recurrence.
LG Energy Solution emphasizes supply chain quality management to maintain sustainable and consistent product quality. The Supplier Quality Management System monitors supplier quality data in real time, preventing issues before they arise.
This effort is bolstered by the introduction of a supplier quality assurance system where all suppliers are regularly evaluated based on international standards and customer requirements. The system reviews suppliers’ quality management systems and processes to ensure consistent product quality. Additionally, it continuously assesses and supports suppliers’ quality assurance capabilities, providing assistance for improvements and reinforcing these frameworks.
To provide more direct support and enhance supplier capabilities, LG Energy Solution offers a range of programs for its primary suppliers. Key programs include the △Rank-up Program, △Supplier Quality Forums, △SQM Academy, and △Sub Supplier Qualification (SSQ) Program.
The company also conducts quarterly quality evaluations, implementing incentives and penalties based on the results. Suppliers are assessed on their quality management systems, performance, and preventive quality control practices. Based on QScore evaluations, suppliers are assigned one of five SQ Rank grades, ranging from S to D, and certifications are issued through the QMS. Suppliers with C and D grades receive focused support to enhance their quality capabilities and achieve higher standards.
LG Energy Solution has implemented specialized systems and processes to ensure the safety of its ESS products among its diverse product lineup.
The Energy Management and Analysis System (EMAS) is designed to ensure stable ESS operations and deliver comprehensive quality management services. Using LTE-enabled equipment installed on customer premises, EMAS collects and analyzes data from battery systems in real time via a cloud server. In case of any issues, it provides after-sales services such as email and message alerts, as well as automated A/S requests, ensuring prompt and efficient follow-up management.
In accordance with international safety standards, LG Energy Solution installs sprinklers that comply with regulations set by the National Fire Protection Association (NFPA), FM Global Safety Standards (FMDS), and the International Code Council’s Fire Safety Code IFC 1206. The ESS systems incorporate selective water spray mechanisms that target affected modules to minimize the spread of fire. Additionally, the systems are equipped with Active Ventilation Systems that rapidly expel flammable gases, further enhancing fire safety and overall protection.
Lastly, LG Energy Solution carefully manages the chemical substances of its products to comply with strict environmental regulations and ensure product quality. By enforcing hazardous substance containment standards that exceed regulatory requirements, the company minimizes its environmental and health impacts. It also monitors global environmental regulations to deliver eco-friendly and competitive solutions while providing suppliers with guidelines to build environmentally responsible supply chains.
LG Energy Solution continuously enhances product quality through rigorous quality management systems, efficient risk mitigation, and close collaboration with suppliers. Its pursuit of excellence in quality reinforces its competitive edge and commitment to delivering superior solutions. Stay tuned for the next episode of “Ask Anything, LG Energy Solution Will Answer” to discover more insights!