LG Corporation is a global leading technology enterprise group. In the automotive sector, it is recognized as a comprehensive provider of automotive parts and technical solutions. Its business portfolio spans core areas such as power batteries, in-vehicle infotainment systems, electronics and display components, e-drive systems, and lighting systems. LG is not a vehicle manufacturer but serves as one of the most critical upstream suppliers in the global automotive industry chain. Its customer base includes major global automakers such as Mercedes-Benz, General Motors, Tesla, Volkswagen Group, Toyota, Honda, Hyundai Motor, and Nissan.
LG’s presence in the automotive parts field is driven by its core member enterprises, including: LG Electronics, LG Energy Solution, LG Innotek, LG Display, LG Magna e-Powertrain, ZKW Group (an Austrian automotive lighting system manufacturer).
Together, these entities form a complete parts supply system covering "battery – e-drive – electronics – display – lighting." As of 2025, eight of the top 10 global vehicle manufacturers are LG customers, accounting for a combined 55% of global vehicle sales. LG Corporation positions its automotive parts business as a core engine for future growth and is accelerating its transformation from a traditional electronics manufacturer to a system-level solutions provider in the era of the "AI-Defined Vehicle."
LG Corporation's exploration in the automotive field began in the early 1990s. In 1992, Lucky Metals (predecessor of LG Energy Solution) began researching secondary batteries, and in 1995, it started independent development of mass production technology for rechargeable secondary batteries. In 2003, LG Electronics entered the mass production stage of automotive parts for the first time, entering the automotive supply chain via in-vehicle infotainment systems. Over the following decade, LG continued to accumulate technology and customer resources in the automotive electronics field, gradually establishing initial influence in the global automotive parts market.
2013 was a key turning point for LG's automotive strategy. LG Electronics officially established the Vehicle Solutions (VS) division, systematically building the automotive parts business from a strategic height. That same year, LG Electronics established an automotive parts headquarters in Incheon, South Korea, laying the organizational foundation for subsequent technology and capacity expansion. In 2016, LG Electronics began large-scale production of electric vehicle parts for General Motors' Chevrolet Bolt, marking an important breakthrough for LG in the EV supply chain. That same year, it won General Motors' 'Supplier of the Year Award' and 'Outstanding Contribution Award'. In 2018, LG Electronics acquired the Austrian automotive lighting system manufacturer ZKW Group for 1.1 billion euros in full ownership, incorporating it into the group's automotive parts portfolio.
In 2020, LG Chem spun off its power battery business to establish LG Energy Solution and initiated the listing process, maintaining the top spot in global battery installation volume for several months in a row that year thanks to its installation advantages in the European market. In July 2021, LG Electronics spun off its electric vehicle drivetrain business and established a joint venture 'LG Magna e-Powertrain' with global automotive parts giant Magna International. LG Electronics held 51% of the shares, and Magna acquired the remaining 49% for 453 million USD. In 2022, LG Electronics' VS division achieved a cumulative order reserve of approximately 100 trillion KRW (equivalent to approx. 72.9 billion USD), securing new automotive parts orders valued at 6.16 billion USD in the first half of the year alone.
Entering 2023, LG celebrated the 10th anniversary of its VS division. The company established 'vehicles as mobile living spaces' as its core concept, focusing on overall solutions for the Software-Defined Vehicle (SDV) era. In 2025, LG Electronics announced its joining of the SDVerse global automotive software trading platform, accelerating software business opening and cooperation. That same year, LG Group continued to expand in the automotive parts field with its 'One Team for EV Parts' collaboration system, successively holding exclusive 'Tech Day' technology showcase events for top global automakers such as Mercedes-Benz, Toyota, Honda, and General Motors.
LG's business system in the automotive field is not a single brand but a complete parts solution matrix formed by multiple member enterprises with separate divisions and coordinated supply.
LG Electronics — VS Vehicle Solutions: LG Electronics' VS division is the core hub of automotive parts business, focusing on in-vehicle infotainment systems, in-vehicle high-performance computing platforms, and cockpit electronic solutions. VS division products cover complete in-vehicle electronic solutions including Audio/Video/Navigation (AVN) systems, digital instrument clusters, rear seat entertainment systems, in-vehicle connectivity modules, and head-up displays. The department cooperates closely with chip companies such as Qualcomm, MediaTek, and NVIDIA to co-develop high-performance computing platforms for smart cockpits and ADAS.
LG Energy Solution (LG Energy Solution): LG Energy Solution is the core entity of LG Group's power battery business. Since spinning off from LG Chem in 2020, it has quickly become one of the top three electric vehicle battery suppliers globally. Its products cover ternary lithium batteries, lithium iron phosphate batteries (LFP), and the newly developed 46-series cylindrical batteries, applied in passenger cars, commercial vehicles, and energy storage systems. LG Energy Solution's main customers include Tesla, General Motors, Volkswagen Group, Ford, Stellantis, Renault, Toyota, and China's Chery. As of January to July 2025, LG Energy Solution's battery shipment volume reached 56.1 GWh, with a market share of approximately 9.5%. In 2025, the company also secured a large LFP battery order from Tesla worth approx. 4.3 billion USD.
LG Innotek — Vehicle Sensing and Communication Modules: LG Innotek focuses on in-vehicle electronic components, covering in-vehicle camera modules, LiDAR, radar sensors, V2X communication modules, and in-vehicle wireless communication solutions. At CES 2026, LG Innotek integrated 20 key components for autonomous driving and ADAS into its autonomous driving concept vehicle, covering core functions inside and outside the vehicle such as sensing, communication, and lighting. In April 2026, LG Innotek won an order from a top European automotive parts supplier to supply automotive-grade Wi-Fi 7 & Bluetooth wireless communication modules to the European market with a total value of $68 million. The company has planned its sensing solutions business to reach a mid-to-long-term goal of 2 trillion KRW in revenue before 2030.
LG Display — In-Vehicle Display Solutions: LG Display focuses on providing high-performance displays for vehicles, covering automotive-grade panels such as plastic OLED and LTPS LCD, widely used in digital instrument clusters, central control displays, and rear entertainment systems. Its main customers include Mercedes-Benz, Audi, General Motors, and Apple (research and development of automotive smart cockpits). In February 2026, LG Display announced the transfer of its in-vehicle LCD module business operated by its Nanjing subsidiary to Tuorun Technology for 491.5 million CNY, to concentrate resources on developing high-end in-vehicle display technologies such as OLED.
LG Magna e-Powertrain (LG Magna e-Powertrain): This is a joint venture between LG Electronics and Canadian Magna International, headquartered in Incheon, South Korea, with over a thousand employees. It has subsidiaries in Michigan, USA, and Nanjing, China. Product lines include drive motors, inverters, in-vehicle chargers, e-drive axles, and integrated e-drivetrains. The company provides mass-produced electric vehicle parts to customers such as Hyundai, Kia, Ford, FCA, and Jaguar Land Rover, and has three major production bases globally: Incheon, South Korea; Ramos Arizpe, Mexico; and Miskolc, Hungary.
ZKW Group — Automotive Lighting Systems: ZKW Group is a wholly-owned subsidiary acquired by LG Group in 2018 for 1.1 billion euros, headquartered in Austria. ZKW is a globally leading manufacturer of advanced lighting systems. Products cover innovative lighting solutions such as LED headlamps, matrix headlamps, OLED taillights, and laser headlamps. Major customers include premium brands such as BMW, Mercedes-Benz, Audi, Porsche, Volvo, and General Motors.
LG Electronics VS Division: In the fourth quarter of 2025, LG Electronics' VS division achieved revenue of 2.6467 trillion KRW and operating profit of 149.6 billion KRW, both setting new historical records, with the operating profit margin breaking through 5% for the first time. In the first quarter of 2026, the VS division continued its strong performance, with revenue reaching 3.06 trillion KRW, up approximately 15.6% year-on-year. Operating profit was 211.6 billion KRW, and the operating profit margin broke through 6% for the first time. The growth of the VS division is primarily driven by the strong demand from European vehicle manufacturers for high-end in-vehicle infotainment systems.
LG Electronics Overall Performance: In the first quarter of 2026, LG Electronics achieved consolidated revenue of 23.73 trillion KRW (approx. $17.5 billion), up 4.3% year-on-year; operating profit was 1.67 trillion KRW, up 32.9%, setting a record for the highest revenue in the first quarter of the year. B2B business sales (including VS department) increased to 6.5 trillion KRW, accounting for 36% of the company's total revenue.
LG Energy Solution: From January to July 2025, LG Energy Solution's battery shipment volume was 56.1 GWh, up only 9% year-on-year. Global market share dropped from 11.8% in the same period of 2024 to 9.5%, ranking third globally amidst fierce competition. In the third quarter of 2025, due to the increased installation volume in the US electric vehicle market, LG Energy Solution's operating profit was expected to increase by 34% year-on-year.
Customer Map: LG Electronics CEO Choo Soo-won revealed in November 2025 that LG's automotive parts and solutions customers cover 8 of the top 10 global vehicle manufacturers, including General Motors, Volkswagen Group, Nissan, and Toyota, accounting for 55% of global vehicle sales.
LG's technology route in the automotive field is evolving along the path of 'from hardware supply to hardware-software integration, then towards AI-driven systems'. Core technology layout covers four major areas: semiconductor sensing, chip platform integration, e-drive systems, and AI-defined cockpits.
Full-Stack In-Vehicle Perception Solutions (LG Innotek): LG Innotek has built a complete line of autonomous driving perception components covering cameras, radars, LiDAR, and high-precision sensors. At CES 2026, its concept vehicle integrated 20 key AD/ADAS components, showcasing the 'AI-Defined Vehicle' technology paradigm. The new generation under-display camera module realizes hidden image sensor layout within the cockpit and simultaneously supports integrated digital key solutions with child detection functions. In 2026, LG Innotek also plans to deliver the first batch of automotive-grade Wi-Fi 7 wireless communication modules for the European market, marking its early advantage in the high-end market of automotive-grade wireless ecosystems.
AI Cockpit Platform and Generative AI Integration (LG Electronics): At the end of 2025, LG Electronics officially launched the AI Cabin Platform, making its debut at CES 2026. The platform is equipped with generative AI models—Visual Language Models (VLMs), Large Language Models (LLMs), and Image Generation Models—directly embedded into the in-vehicle infotainment system via local inference. High-performance computing support is provided by the Qualcomm Snapdragon Cockpit Elite chip, enabling real-time generation of driving warnings, adaptive music ambiance, and AI-customized UI without connecting to external servers. The platform can analyze the driving environment and driver status in real-time using built-in in-vehicle and exterior cameras, achieving proactive intervention-style safety suggestions. LG positions this as a new paradigm beyond Software-Defined Vehicles, entering AI-Defined Vehicles.
Integrated IVI/ADAS High-Performance Computing Platform (HPC Lite): LG co-developed the next-generation HPC Lite platform with AI software developer aiMotive, integrating in-vehicle infotainment systems and ADAS functions into a single controller. This ECU runs aiMotive's aiDrive software, supporting L2+ level autonomous driving assistance—achieving automatic assisted driving on highways and secondary roads based on multi-camera and multi-radar configurations without HD maps, including automatic identification of traffic lights, automatic speed adjustment according to speed limits, intelligent overtaking, and lane merging assistance. Through centralized cross-domain control architecture, vehicle hardware complexity and single-vehicle component costs are reduced, providing an efficient physical layer integration paradigm for electronic control systems in the Software-Defined Vehicle era.
E-Drive and Lightweighting Systems (LG Magna): LG Magna e-Powertrain possesses a complete R&D and manufacturing system for e-drive axles, with production bases in South Korea, China, USA, and Hungary. This qualified entity can provide highly integrated drive motors, inverters, and in-vehicle chargers for electric vehicles, supporting electric platform needs for vehicle types from Class A to Class E. Major customers include Jaguar Land Rover, Ford, FCA, Hyundai, and Kia.
Power Battery Materials and Structural Innovation (LG Energy Solution): The 46-series cylindrical battery is the most representative technological breakthrough for LG Energy Solution in recent years, featuring a large cylindrical structure with significantly higher energy density than traditional 2170 cylindrical batteries. In 2025, LG Energy Solution successfully entered the Chinese market, signing a six-year 46-series battery supply contract with Chery Automobile, becoming the first South Korean enterprise to provide batteries to Chinese passenger vehicle manufacturers. In the LFP chemical system field, the company secured a large order from Tesla worth approx. 4.3 billion USD, achieving a good balance between performance and cost.
Automotive Lighting Smart Integration (ZKW): ZKW's high-end smart lighting technology fuses lighting with environmental sensing functions. Its matrix LED and OLED taillights can achieve adaptive beam distribution, dynamic lighting display, and in-vehicle-to-outside vehicle communication functions. Meanwhile, it provides scenario-based lighting solutions for intersection lighting and pedestrian warnings in autonomous driving contexts.
LG Group has constructed a systematic network of automotive parts production bases and R&D networks globally, covering the three core regions of the automotive industry chain: North America, Europe, and Asia-Pacific.
In the North American market, LG focuses on the USA, Canada, and Mexico as key bases. LG Magna e-Powertrain has a manufacturing and engineering center in Troy, Michigan, USA. In 2025, LG Electronics announced an investment of approx. 350 million Mexican Pesos (approx. $205 million) to build a new factory in Querétaro State, Mexico, to produce parts such as in-vehicle cameras, LEDs, and motors. It is expected that the first phase will create 630 job positions, with potential expansion to a scale of a thousand people in the future. Additionally, LG Energy Solution has R&D centers and factories in Michigan, USA, and is promoting a joint venture battery factory with General Motors called Ultium Cells to supply the North American market.
In the European market, LG Magna has a production base in Miskolc, Hungary, which is also the headquarters of ZKW, which has factories in Austria, the Czech Republic, and China. LG Magna is also actively carrying out OEM customer order deliveries in Europe. In 2026, LG Innotek won a Wi-Fi 7 car module order from a top European Tier 1 supplier, with products scheduled for mass delivery starting in 2027.
In the Asia-Pacific market, Japan is a key area for LG. LG Electronics expanded its automotive parts research institute in Japan and recruited key engineering and technical talents in Yokohama and Nagoya to enhance customer communication and supply chain coordination with Toyota and Honda. In 2025, LG Group executives went to Tokyo to host a Tech Day event for Honda, having previously held a Tech Day exclusively for Toyota in September 2024. In China, LG Electronics has a Nanjing automotive parts subsidiary (LGENV), LG Magna has a production base in Nanjing, and LG Display has deployed display businesses in Shanghai and Nanjing.
LG Group’s automotive parts business is undergoing a strategic transformation from “component supply” to comprehensive “solutions.” Its future strategy focuses on three core directions.
The first is a comprehensive layout for Software-Defined Vehicles (SDVs). LG Electronics has joined the SDVerse global automotive software trading platform, opening its LG AlphaWare suite—comprising five software pillars (PlayWare, MetaWare, VisionWare, BaseWare, and OpsWare)—to the industry. These solutions cover in-vehicle entertainment, AR/MR navigation, cockpit monitoring, operating systems, and lifecycle management for in-vehicle security. Through this platform, LG aims to drive its evolution from a hardware supplier to a “Mobility Experience Service Provider” via an open ecosystem business model.
The second is a technological leap toward AI-Defined Vehicles (AIDVs). LG has explicitly defined a paradigm beyond SDVs, positioning AIDVs as the core framework for next-generation mobility. The company is committed to integrating generative AI into vehicle cockpits, ADAS, traffic sensing, and human-machine interaction systems. The AI Cockpit Platform is regarded as an early landmark achievement of this vision.
The third is a dual drive of electrification and premiumization. LG Energy Solution is advancing a parallel product strategy for lithium iron phosphate (LFP) batteries and ternary batteries to meet diverse customer demands regarding cost and range. Meanwhile, the large-scale mass production of 46-series large cylindrical batteries is viewed as a strategic high ground for the company in the field of high-energy-density cells.
LG Electronics CEO Choo Soo-won stated on LinkedIn: “Eight of the world's top 10 automakers are using LG automotive solutions. Based on decades of insights into user needs, we view vehicles as ‘mobile living spaces’ and provide integrated cockpit solutions ranging from infotainment to cockpit sensing and connectivity.” Key indicators for the future success of LG’s automotive parts business include: whether the VS division’s profit scale can continue to grow; whether 46-series batteries can achieve scaled application in Tesla and other mainstream international models; whether the AI Cockpit Platform can become the breakthrough force driving LG’s transition from a Tier 2 supplier to a core provider of “Whole Vehicle Intelligence Solutions”; and whether SDVerse can successfully establish a commercial closed loop for software circulation within the automotive ecosystem. According to Boston Consulting Group forecasts, the Software-Defined Vehicle market will generate over $650 billion in new value by 2030, accounting for 15% to 20% of total industry growth. LG is striving to secure a key position in this vast market.
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