LG Energy Solution is reallocating employees to its Ochang Factory as it gears up for the production of 4680 battery cells. The company posted a notice on August 16th to inform workers of available transfers, aiming to move 102 employees to the Ochang facility. This follows a previous reassignment of 288 personnel to the same plant in late 2023. The reassigned workers will engage in the 4680 cylindrical battery and pilot production test line, with mass production expected to start by the end of the third quarter or the beginning of the fourth quarter. Tesla is anticipated to be the primary recipient of these 4680 cells.
LG Energy Solution has previously restructured its workforce multiple times, often due to the discontinuation of specific electric vehicle models or production line expansions. The recent increase in surplus workers, attributed to the temporary slowdown in electric vehicle demand, has extended the period employees spend waiting without work. This adjustment reflects ongoing efforts to maintain operational efficiency while addressing current market conditions.
Employee Reallocation and Strategic Plans
The decision to reassign workers to the Ochang Factory was discussed in an employment stabilization committee meeting between labor and management. The meeting focused on strategies to reallocate workers company-wide. An industry insider commented on the frequent reassignments:
“We have been conducting reassignments frequently due to the discontinuation of certain electric vehicle models or expansion of production lines, but since the second half of last year, the surplus workers have increased due to the electric vehicle chasm (temporary slowdown in demand), and I understand that the period of waiting without work has also gotten longer.”
Production Schedule and Future Expectations
LG Energy Solution aims to accelerate the mass production of the 4680 battery line at the Ochang plant. During the company’s Q2 2024 conference call, Noh In-hak, Director of Battery Planning and Management, remarked:
“The new 4680 battery line at the Ochang plant has been prepared. We tried to bring forward the mass production schedule as much as possible, but due to internal maintenance and schedule consultations with customers, we plan to start mass production at the end of the third quarter or beginning of the fourth quarter as originally planned.”
In 2023, LG Energy Solution had undertaken similar reassignments to manage workforce and production needs, reflecting a consistent strategy of operational flexibility. This approach has also been influenced by fluctuating demand in the electric vehicle market. Moving forward, the company will likely continue adapting its workforce allocations to align with market dynamics and production requirements.
As LG Energy Solution prepares for the mass production of 4680 battery cells, the reallocation strategy aims to optimize workforce efficiency while meeting production deadlines. This move underscores the company’s commitment to maintaining its position in the competitive battery manufacturing market. For stakeholders and potential customers like Tesla, this development could signify a reliable source of advanced battery technology, potentially impacting the electric vehicle supply chain positively.
