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Notice ★ LG Chem Residential Storage RESU 48V & 400V Installation Video 2016.12.23
LG Chem RESU3.3/RESU6.5/RESU10 Ground-mount
https://www.youtube.com/watch?v=1NQRvL4HUn4&t=35s


LG Chem RESU3.3/RESU6.5/RESU10 Wall-mount
https://www.youtube.com/watch?v=HzR4AVJFXBE


LG Chem RESU Plus
https://www.youtube.com/watch?v=BE0mtpaav3w


LG Chem RESU7H/RESU10H
https://www.youtube.com/watch?v=odCb6h7SdMU


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Press Release [LG Chem customer case study] A Powerful Combination 2016.09.20
LG Chem answers the call for alternate energy solutions
Complementing a residential solar system with a storage solution is a big decision,
but one NSW homeowner found it can be tested one step at a time.

Energy consumers in Australia are growing dissatisfied with the never ending electricity hikes and the phasing
out of
energy efficient incentives. Wanting to become independent of the grid, consumers are looking for
alternative energy
solutions and are turning to energy storage solutions. It offers homeowners a way to store
energy generated from
PV solar panels and utilise it for household energy needs. In some cases energy costs
can be halved.


Problem

Australian energy consumers want to find new solutions to become less dependent on the grid.
Despite following instructions to lower their energy consumption through more efficient lifestyles, there looks to be no
end in sight to high grid electricity prices. Australian energy prices have continued to rise, by 61% between 2008 and
2014, despite the decrease in energy use of 7% since 2002.

With the planned phase out of feed-in tariffs at the end of this year and into 2017, the incentive and appeal of
PV systems no longer exists for homeowners.

Bernd Luedecke, a resident of Hazelbrook in the NSW, was looking for an alternative energy solution that would be
sustained long into the future by reducing energy costs and dependence.

"My electricity costs were high, so the thought of investing some capital into a PV system with battery could lower
my electricity costs seemed favourable," Luedecke says.

 

Solution

In 2015 LG Chem launched the RESU 6.4EX into the Australian market using local installers to help drive awareness,
understanding and benefits of its storage system. One of them was Damian McMahon of Blue Mountain Solar.

Luedecke initially considered a Tesla storage system but after consultation with McMahon decided on the LG Chem
RESU6.4EX battery plus two 3.2kWh expansion units, he says.

"Initially, I was thinking about a TESLA storage system but after consultation with Damian, I decided on the LG Chem
RESU6.4EX battery plus two 3.2kWh expansion units," said Bernd Luedecke.

LG Chem is Korea''''s largest diversified chemical company and operates three main business units: petrochemicals,
IT and electronic material, and energy solutions. Since launching into the Australian residential market in July 2015,
more than 600 LG Chem units have been installed. It expects 3,000 units will be installed in 2016.

The RESU 6.4 EX contains the highest energy density in the world, which means it is powerful for its size and can be
integrated easily into any home to slowly transform the power supply through a technical implementation.

"The batteries were added in stages," Luedecke says. "First I had a no-battery PV system, then a 6.4kWh battery was
added and monitored before two expansion units were added."

After installation the installer worked closely with the homeowner to help with trouble-shooting, fixing any installation
problems and after-installation issues to ensure all expectations were met.

"With the battery system in place my electricity cost has reduced significantly," Luedecke says. "The system has met
all my expectations around cost efficiency and PV engineering/storage efficiency."

Benefits

The major benefit of the storage system is the ability to store the electricity the solar panels generate during the day
that is excess to household usage.

At night a household can draw down the battery, thus saving costs on electricity that would otherwise be bought in
from the grid.

"On most nights my household can get through the night with zero buy-in of electricity from the grid," Luedecke says.

Energy storage also enables users to measure how much electricity they are using in kilowatt hours and dollars to give
them more control over how much grid energy they use. "My total cost with the battery PV system in place is around
$120 a quarter, or $480 a year," Luedecke says. "Without the system it would be $270 a quarter a about $1,080
a year."

Not only does a storage system help reduce electricity cost and dependence on the grid, it cuts dependence on fossil
fuel consumption.

"There is also a reduction in CO2 I generate since I demand less electricity generated by coal-fuelled power, which is
good for everyone."

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Press Release LG Chem introduces new home storage series with 48V and 400V models 2016.08.05

LG Chem introduces new home storage series with 48V and 400V models
Five new energy storage systems (ESS) added to extend product portfolio

SYDNEY, AUSTRALIA, 18 JULY 2016 – LG Chem, one of the world’s leading manufacturers of lithium-ion batteries,
has announced the launch of its next generation residential battery storage system. The system has been
completely redesigned both internally and externally leaving a newly developed battery cell as the centrepiece.

LG Chem now offers low-voltage variants (48V) and for the first time high-voltage variations (400V) in order to meet
energy requirements of photovoltaic systems users in Australia and New Zealand. Available from the third quarter of
2016, the new RESU models come with the capacities to generate from 3.3 to 9.8 kilowatt hours (kWh) in the
low-voltage and 7.0 to 9.8 kWh in the high-voltage variation. With a battery from the RESU series, users can save on
energy costs by utilising solar generated power in the evenings.

“We are delighted to launch the new RESU series in the ANZ market,” said Changhwan Choi Manager for Australian
Business Development. “There is a massive sustainability potential that is yet to be unlocked if Australia wants to be
100 percent powered by renewable energy. With the end of feed-in-tariffs at our doorstep our new RESU series range
offers an efficient system to meet every need.”

Flexible energy storage
The new storage series includes two high-voltage battery systems, RESU7H and RESU10H, along with three
low-voltage battery systems such as the RESU3.3, RESU6.5 and RESU10. The new high-voltage models provide a
variety of inverters that consumers can in order to convert solar DC into usable AC. The move into high-voltage systems
is driven by the trend of developing new inverters in high-voltage area across LG Chem’s partners. Customers now have
the advantage of being offered new high-voltage battery systems, which enables numerous additional combinations of
home storage and inverter, with which they can leverage the full potential of their photovoltaic system.

“The modular design of the new RESU models brings heightened flexibility” said Choi. “If a user chooses to expand its
photovoltaic system, the capacity of the storage system can also be adjusted accordingly”.

"For the first time, the new RESU series covers a complete range of inverter concepts in the market,” said Choi.
“Whether high or low-voltage, single or three phase, the new product line-up opens up the possibilities to create an
optimised system for each users’ individual energy consumption needs.

With the expansion kit RESU Plus, it is possible to combine two RESUs within the low-voltage class together. The range
of capacity thus moves in the low-voltage range from 3.3 to 19.6 kWh.
All models are available in silver and champagne gold.

State of the art due to unique production method
With small dimensions and a low weight, the RESU 6.4 EX model has the highest energy density currently available on
the ESS market. LG Chem has increased the compactness once more through its new residential storage products. The
model RESU 6.5, for example, falls four centimetres flatter than the comparable RESU 6.4 EX and weighs in at eight
kilograms less than the current device. The new design is made possible by a newly developed battery cell that is being
produced with Lamination and Stacking process. Currently, only LG Chem is able to apply this method of manufacturing
in mass production. With this production method, the new battery cell can be produced with lower costs compared to
the previous one which affects the end-price for the customers.

Also new is the IP55-certified, waterproof casing, making the models suitable to be installed and configured outside the
house, for those who don’t have the extra room for the storage system.

The launch of the new RESU series in the Australian market comes after strong momentum in Germany the LG Chem
RESU series won the ESS award 2016 at Intersolar Europe, the world’s leading exhibition for the solar industry, for its
innovation and design. More information about LG Chem and its new RESU series can be found at:
http://www.lgesspartner.com/au and http://www.lgchem.com

About LG Chem
LG Chem, Ltd. is Korea’s largest diversified chemical company which operates three main business units: Petrochemicals,
IT & Electronic Materials and Energy Solution. The chemical business manufactures a wide range of products, from
petrochemical goods to high-value added plastics. It also extends its chemical expertise into high-tech areas such as
electronic materials and rechargeable batteries field. Based on the many years of experience in the development and
production of batteries, LG Chem is one of the world''s leaders in energy storage systems. As such, the company is a
primary supplier for the mobile and automotive industry around the world. Entering the business of ESS in 2010,
LG Chem has constantly developed and supplied innovative solutions for the ESS market segments such as Grid,
Residential and UPS. Throughout multiple production facilities and an extensive distribution network globally, LG Chem
has become a global leading company.

PR Contact
Lewis
Claire Ferrie
Office: +61 2 8599 1000
LGChemAU@teamlewis.com
http://www.teamlewis.com

 

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Press Release Global Landscape of Residential Energy Storage 2016.08.04

Global Landscape of Residential Energy Storage

ees International met Dr Sung Hoon Jang, Senior Vice President of LG Chem ESS Battery Division, to talk about the
status of the global energy market, governmental policies, interesting markets for residential energy storage as well
as Asian storage market.

ees: Dr Jang, what is the current status of the global energy market and what makes it gather momentum?
What effect will it have on the energy storage industry?

As public interest on climate change is rising and the importance of clean energy escalating, the transition to renewable
energy that is to substitute fossil fuels is expected to be accelerated. The UN Climate Change Conference, held in Paris
at the end of 2015, will also catalyze this global movement.

As the energy storage industry grows, it will gain momentum to revitalize the renewable energy industry and will play
a key role in the shift to renewable energy sources. The renewable energy industry and the shift to renewables have
been mostly driven by government policies in countries such as Germany, Japan and the U.S.. But these support schemes
will not last forever and are expected to decrease in the coming years. To replace the role of fossil fuels and to act as
the main type of energy generation, renewable energy such as PV and wind essentially needs energy storage to
overcome the fluctuating generation characteristics. It is almost 100% certain that the energy storage industry will see
a huge growth in the coming years: not only on a utility-scale basis, but also in the residential area.

ees: What are the major global and local trends affecting the residential energy storage landscape and how are they
transforming the markets?

1. Governmental policies have huge impacts on market changes: The residential PV market has seen a huge growth in
the past few years, mainly thanks to government policies such as Feed-in Tariffs (FiT) and net metering. But as these
support schemes begin to shrink or end, because the budgetary burden for governments has become too great, the
growth rate has declined significantly. The instability of the electrical grid at midday the sun is at its peak together
with the rise of costs for stabilizing the grid have led to residential ESS becoming the silver bullet for solving these
problems. Also, as li-ion battery prices fall, the economics of residential ESS will increase their attractiveness.

2. Change of customers’ needs and perception: The needs and consciousness of customers have changed. In the past,
the residential area was driven mainly by government policies such as FiT. But recently, people’s perception has changed
in a positive way, and many people are more willing to participate in the renewable and storage market. And as FiTs are
decreasing, most of the benefits from PV-generated electricity will come from self-consumption rather than selling it
back to the grid. Energy storage is the only solution that can increase the selfconsumption rate significantly and also
work as back-up powers in the case of blackouts. Especially in markets such as Germany, the FiT is lower than the
average electricity price, households can economically benefit from storage systems.

ees: We also agree with the idea that the governmental policy is the critical factor which affects the residential energy
storage market. Then, would the German subsidy program be applicable to other markets to promote growth of the
storage industry?

I believe that the subsidy program in Germany contributed significantly to the expansion of the residential storage
market. The market is still in its early stages, and customers aren’t familiar enough with residential storage products.
Due to the characteristics of an experience good, it is often hard to decide, whether or not to invest in a storage
system. Therefore, government programs that decrease the initial investment for customers will be a crucial aspect
of accelerating market growth.

But since government policies and programs have to consider local market characteristics such as market size,
maturity, growth rate, etc., it is hard to say whether the same subsidy scheme will be applicable to other countries.
The li-ion battery has been experiencing a rapid decrease in price level and even though the reduction rate is shrinking
this trend is expected to continue. In this respect, the KfW’s 275 subsidy program, in which the subsidy portion is
decreased every six months, is reasonable.

ees: So far, we’ve mainly focused on the driving forces in terms of governmental policies and market demands.
Could you mention technical triggers which affect the residential energy storage market?

Initially, first residential battery storage systems were installed, most of them were lead acid battery systems. I believe
the shift of battery technology from lead acid to li-ion played a crucial role in the residential storage market
development. Lead acid batteries have a long history and are seen as a mature technology that is very cheap which
results in very low initial investment costs. The problem is that these batteries are heavy, large in volume, and have
a low life cycle compared to li-ion batteries. When more and more li-ion battery systems were launched in the market,
customers quickly noticed the attractiveness of li-ion batteries. And LG Chem has quickly gained reputation in the
market as a leader in the global storage market due to its state-of-the-art li-ion battery technology.

ees: Throughout the past few months, LG Chem has positioned itself as one of the leaders in various energy storage
markets. What are your key strengths and how do you distinguish yourself from the other competitors in the market?

As one of the leading companies in the li-ion battery business, LG Chem has a quite unique business background. Unlike
the ordinary battery manufacturers in the electric sectors, our company has its origin in chemicals. Since our foundation
as the basic material and chemical manufacturer in 1947, we have been accumulating advanced technologies and the
know-how in chemicals while building up valuable global partnerships as a trusted chemical supplier. We are confident
that our in-depth understanding of the key material for li-ion batteries and the long years of experience and success
in the automotive and mobile battery sector is a competitive advantage that cannot be easily followed.

Three years ago LG Chem started mass production of li-ion battery cells specifically designed for ESS to achieve
technological advantages in important characteristics such as life, energy density and costs. With the battery cells
especially developed for ESS, LG Chem was able to accumulate huge reference and gain experience globally. LG Chem
very quickly became the leader in the ESS business through technological advancement. And LG Chem has recognized
the importance of the automotive and ESS battery business and is intensively investing in R&D, marketing and
production. LG Chem’s vision is to fulfill “Innovation For a Better Life” for its customers through the li-ion battery
business.

ees: What are currently the most interesting markets for residential energy storage and what is your strategy of
expansion?

Currently, the most interesting markets for residential storage are Germany and Japan and promising markets in the
near future are Australia and the U.S. Last year in April, LG Chem launched the RESU6.4EX which received a positive
feedback from the market. The RESU6.4EX is the smallest residential storage system in the market providing benefits
to installers and customers. Because of its remarkable performance and features, LG Chem was able to set up
partnerships with new customers in the market. Through close relations with our partners, we can find out customers’
needs very quickly and act proactively in the market, which is one of the main success factors of LG Chem’s ESS
business. In a few weeks, we are going to launch a new program for our distribution partners and installers that
include incentive programs and marketing support. Through the program, LG Chem intends to support local installers
financially and technically.

ees: How does the Asian storage market differentiate itself from the rest of the world?

It is hard to see the Asian market as a whole, since there are differences between major countries in terms of the
characteristics of their energy industry, infrastructure, tariffs and policies.

First, in case of South Korea, after the UN Climate Change Conference held in Paris last year, the government is
expected to implement renewable and storage related policies more actively. The Korean government is planning to
invest heavily in the energy sector until 2030. Japan, one of the leading countries in terms of integration of renewable
energy, has a huge market potential. Not only has the storage demand for renewable integration increased drastically,
but the need for back-up power of households is also increasing due to a range of natural disasters that have occurred
in recent years. LG Chem introduced RESU6.4OMR, specifically designed for the Japanese market, and will expand its
activities in the future as well. In case of China, the government-driven renewable energy business will lead to the
growth of the storage business and to the enhancement of the integration of renewable energy, because China has
adopted an enormous amount of PV and wind energy into the grid in recent years.

Lastly, in case of India and Southeast Asia, the unstable electric grid will lead to the adoption of large-scale storage
systems, and the demand for long-lasting li-ion batteries is growing.

ees: LG Chem will be presenting product novelties at the ees Europe in June 2016.
Could you, really briefly, tell us something about your new residential line-up?

Thank you for your interest in LG Chem’s new products. We have received a lot of positive feedback from the market
since we launched the most compact residential storage unit: the RESU6.4EX. But we have also learned our lessons,
especially getting to know installers’ and customers’ needs installing and using the RESU6.4EX. From this, we tried to
reflect on all the feedbacks and needs developing the new products.

First of all, LG Chem has developed a new li-ion battery cell specifically designed for energy storage. We have
increased its energy density; it is even higher than that of the previous cell, which was already one of the most compact
battery cells globally. We hope that the compact volume of the new products meet our customers’ needs namely to
install storage systems easily and to minimize spatial limitation. Customers can install the new products in a stand type
or in a wall-mount type whichever suits their needs best. Furthermore, we have increased the product line-up drastically
to enable a variety of capacity options to choose from. Not only capacity, but also the voltage option has been added
to increase compatibility with even more inverters than the previous RESU6.4EX had. We have changed the design too.
The new products will be presented at ees Europe 2016 from 22nd to 24th of June at the LG Chem booth.

ees: Thank you for the interview.

Dr Sung Hoon Jang Senior Vice President, Head of ESS Battery Division

▷ Press Release Link

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Press Release LG Chem launches LG ESS Partner Portal 2016.08.04

LG Chem launches LG ESS Partner Portal
LG Chem answers the call for wider product support by providing online resources and
rewarding loyal partners with incentives

SYDNEY, AUSTRALIA31 May 2016 – LG Chem, a leader in energy storage solutions, today announced the launch of
the LG ESS Partner Portal, an online site dedicated to providing installers and distributers with helpful information about
LG Chem products. This is the first time LG Chem has launched a portal for its business partners and is driven by
industry requests for further support.

The partner portal will provide partners with detailed information about energy storage solutions including
product information; warranties, manuals, product images, specifications, brochures, flyers and other materials
to help support all activities across residential, commercial and industrial grid and UPS applications.

“LG Chem partners are an important part of our ecosystem hence it is crucial that we make investments to help them
be successful in the storage business,” said Changhwan Choi, Manager of Australian Business Development, LG Chem.
“The launch of this new portal enables installers and distributers to effectively explain and install LG Chem battery
systems to the markets they operate in.”

The launch of the portal comes in conjunction with the introduction of a membership points program,
LG ESS Partner Care Program. By registering with the portal distributors and installers can accumulate points in
exchange for additional benefits such as price reductions and presentation materials.

“We don’t just want our customers to be successful, we want to thank them for joining the portal through a rewards
program,” said Choi. “All LG Chem products are equipped with a serial code that can be entered into the portal to
register the points, installers will receive points for selling LG Chem products and distributors will receive points
an installer buys our products off them. By creating the points system, we are allowing our customers to reap the
benefits of all their hard work and thank them for their loyalty to LG Chem.”

About LG Chem

LG Chem, Ltd. is Korea’s largest diversified chemical company which operates three main business units: Petrochemicals,
IT & Electronic Materials and Energy Solution. The chemical business manufactures a wide range of products, from
petrochemical goods to high-value added plastics. It also extends its chemical expertise into high-tech areas such as
electronic materials and rechargeable batteries field. Based on the many years of experience in the development and
production of batteries, LG Chem is one of the world''''s leaders in energy storage systems. As such, the company is a
primary supplier for the mobile and automotive industry around the world. Entering the business of ESS in 2010,
LG Chem has constantly developed and supplied innovative solutions for the ESS market segments such as Grid,
Residential and UPS. Throughout multiple production facilities and an extensive distribution network globally, LG Chem
has become a global leader. The product portfolio includes solutions from the ESS market segment like grid,
residential and UPS, and offers a variety of possible applications for partners and end customers.

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Press Release Battery storage presents $24 billion opportunity 2016.05.31
Battery storage presents $24 billion opportunity

Climate Control News, 12 May 2016



LG Chem business development manager in Australia, Changhwan Choi, explains why the issue of
profitability cannot be avoided it comes to investing in photovoltaics.


According to a report by the Climate Council, half of all Australian households will adopt solar systems
with battery storage, a market worth $24 billion.

It goes without saying that together with rooftop solar, battery storage presents an opportunity for
Australian households to use a much greater amount of the solar photovoltaic (PV) electricity they
generate and minimise the need to purchase expensive electricity from the grid.

As feed-in tariffs begin phasing out, households will also start receiving far less for solar electricity added back into the grid. This, coupled with skyrocketing electricity prices during peak periods, will increasingly drive solar PV systems with added battery storage to become the most economical choice for
electricity provision.

2016 presents a plethora of opportunities for organisations in the energy storage sector and it’s time
to consider re-investing in PV.

To be competitive in the energy market, organisations need to watch renewable energies closely and
know that energy storage systems, also called ESS, play a central role here.

For the first time, ESS is able to store energy from the PV system, enabling it to be used in the evenings
independently. Providing battery systems can be an interesting and lucrative alternative to conventional
energy fed into the electricity grid.

This method enables users to store energy generated by solar panels for household needs and depending
on the size of their PV system and individual usage patterns, a cost saving of up to 70 per cent can be
achieved.

ESS is a trend-setting and almost revolutionary approach, especially organisations consider how long the industry
has searched for solutions that possess the capabilities to make in roads with energy turnaround.

With new developments in lithium-ion (Li-ion) technology, Li-ion batteries are becoming cheaper, as the ESS market enjoys steady growth.

In fact, energy storage systems are expected to grow 70 per cent in 2016 compared to previous years,
particularly the RESU6.4EX, which provides private consumers efficient ESS products that also play an
integral role in the international market.

Another catalyst of ESS is the phasing out of feed-in tariffs, the potential for electricity hikes and the
decreasing cost of solar battery storage.


In summary the question of profitability of PV has been raised to a new level of discussion.
Hence, the
benefits of a system should not be considered in isolation. Instead, organisations should weigh various
benefits of the technologies in terms of its
efficiency in the long term.

Climate Control News
▷ Battery Storage Presents $24B billion opportunity


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Press Release LG Chem Expands Footprint in Australian Residential Solar Storage Market 2016.03.29

LG Chem Expands Footprint in Australian Residential Solar Storage Market
Company poised for five-fold growth in 2016


SYDNEY, AUSTRALIA, 24 March 2016 - LG Chem, Ltd., one of the world’s leading manufacturers of lithium-ion batteries has announced its plans to expand its footprint in the Australian residential solar storage market. With its expertise and legacy in the IT and Automotive battery industry, LG Chem has more recently established itself as a clear leader in the
energy solar storage (ESS) market today.

LG Chem entered the Australian residential storage market in July 2015, with the RESU6.4EX. The product has the
highest energy density in the world, which means it is the smallest in volume compared to the amount of energy it
can deliver. Its quality has already been proven in Germany and Japan - the two markets LG Chem has seen the
most uptake of its residential storage systems to date. The company has also seen exponential traction for the
RESU6.4EX in Australia more recently.

Untapped opportunity in Australia for solar energy storage

LG Chem believes it can play a key role in Australia’s solar renaissance. In a less than year since the company’s entry
into the Australian market, LG Chem is already making significant strides. Supported by its two main distributors Solar
Juice and Supply Partners, the company supplied 600 units since it launched in Australia and expects to see a five-fold
increase in growth this year, supplying more than 3000 units in 2016. Once the feed-in-tariffs (FiT) come to an end in
Australia in 2017, the company expects to see even greater growth.

“This could be a critical decade for Australia. There is a massive sustainability potential that is yet to be fully tapped”,
said Changhwan Choi, Manager for Australian business development. “We see a quiet solar revolution brewing and we
strongly believe that LG Chem will be at the forefront of this transformation to help unlock the true value of solar
storage and better enable the ecosystem. We welcome competition too. We are positive that more people adopt the
RESU6.4EX in Australia, the market will appreciate the quality, efficiency and cost competitiveness of our offering”.

LG Chem’s decision to expand into the Australian market is fueled by the country’s increased recognition of the
importance of solar power generation and storage given the highest average solar radiation per square metre of any
continent in the world1. Solar energy systems will also play a critical role in tackling climate change. According to
market research company Navigant Research, the ESS market is set to grow from its current level of 1.1 billion US
dollars (1.0 billion euros) to $7.4 billion within the next five years.

A new policy paper released this month by the Clean Energy Council of Australia entails a slew of initiatives that would
help increase the uptake of the battery storage in the country. One of the key support measures is to design new
“tariffs that can allow consumers to realise the economic benefits of an investment in the technology”.

LG Chem’s list of global customers in the automotive industry has broadened over the years since it began delivering its
lithium ion battery, such as GM, Ford, Chrysler, Audi, Daimler, Renault, Volvo, Hyundai, and various Chinese
manufacturers.wth-in-2016



Renew Economy

▷ LG Chem ramps up Australian battery storage plans ahead of "critical solar decade"

Manufacturer`s Monthly
▷ LG Chem Expands Footprint in Australian Residential Solar Storage Market

PRWire
▷ LG Chem Expands Footprint into Austrialian Residential Solar Storage Market Company poised for five-fold growth in 2016


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Press Release R&D, the Key to Success of LG Chem`s EES Business 2016.03.29


R&D, the Key to Success of LG Chem`s EES Business


Kim

ees International met Jeeho Kim, Director of LG Chem’s ESS R&D center, in order to learn about the company’s technical
competitiveness and future plans in more detail. At present, he is leading the ESS R&D organization located in Daejeon
and Gwacheon, Korea.

ees :
LG Chem has procured several large-scale projects such as STEAG and AES, and also introduced the new energy storage
system RESU 6.4EX which is aimed at the residential market. What are the main forces that have driven such a notable
achievement?


Kim :
First of all, our accumulated ‘Cell technology’ is the main driving force. LG Chem has a truely unique business
background.
Unlike ordinary battery manufacturers in the electric sectors, our origin lies in chemicals. Since our foundation as basic
material and chemical manufacturer in 1947, we have accumulated advanced technologies and acquired know-how in
chemicals while building up a valued global reputation as a trusted chemical supplier.

Now, with the emergence of Li-ion batteries, the global energy storage market has been reorganized. We are satisfied
with our in-depth understanding of the key material for Li-ion batteries and the global supply chains for it. And this
differentiates us considerably from our competitors.

ees :
Could you tell us in more detail about how your expertise and background in chemicals has made LG Chem outstanding
compared to your competitors in terms of Cell technology?


Kim :
The raw material is the most important factor as it determines the quality of products. If its quality is not guaranteed,
it is impossible to ensure high quality of the end-products. Even an efficient manufacturing process or good packaging
cannot change the situation. The same also applies to batteries. Now, we have the global top class Cell technology which
is the basic unit of Li-ion batteries.

LG Chem also has the in-house capabilities for producing Li-ion Cells from designing the formula to manufacturing.
Therefore, it is possible to collaborate with suppliers to develop the exclusive Cell only for us or to provide them with
our own know-how which can be useful in developing a more balanced Cell. Our in-depth understanding and attempts
to search for new materials also help us to achieve technical breakthroughs more rapidly. We can say that LG Chem’s
Cells are far superior to those of our competitors in terms of performance, stability, and safety.


ees :
You emphasized the advanced Cell technology as the key distinction which separates LG Chem from your competitors.
Then, how can your customers realize it?


Kim :
First of all, I would like to mention the higher safety aspect. With our Cell, we use SRS (Safety Reinforce Separator)
technology in which the separator between anode and cathode is coated with ceramic. This process makes our Cell
highly resistant to high temperatures. While the energy storage system is operating, the inside of the Cell is easily
heated because the charging and discharging process is continually repeated.

Such a high temperature can cause shrinkage on the separator inside the Cell. It’s the main reason for an unforeseen
system shutdown or fire. Our Cell coated with insulating materials maintains the original form even in the high
temperature range of over 200°C so that the whole system can be operated without any sudden accidents.

To increase the manufacturing efficiency and reduce the costs, we provided Japan-based To-ray with the paid license to
use our SRS technology and the manufacturing facility last year. It allowed us to supply our customers with safer cells at
reasonable prices. In case of residential and commercial areas, safety is one of the most critical key buying factors the
potential customer considers, so this is we have an advantage.

ees :
We also agree with the viewpoint that safety is the key strength because the major markets for ESS are advanced
countries in which safety regulations are much stricter. Besides safety, what would you say is outstanding regarding
your Cell technology?


Kim :
The much higher energy density and the flexibility in aligning Cells are also important strengths of LG Chem Cells. The
energy density of an LG Chem Cell is the world’s highest level (412Wh/l) and it allows to maximize the energy capacity
of cell-composed products such as Module or Rack. Also, LG Chem uses the pouch-type (sometimes called coffee
bag-type) Cell which is lighter and softer than metal-type ones. It makes our Cells more compact than those of our
competitors.

With the flexibility and the thinness of pouch Cells, we can align Cells more densely and minimize the number of
system units. All of those features help us reduce the raw material costs. For example, the energy capacity per 40ft
container amounts to 2MWh and is about 15% bigger than that of our competitors. With our next Cell generation,
we expect the capacity to be doubled to 4MWh per 40ft container, which is the world’s biggest level. The higher energy
capacity is one of the key factors which differentiate us from our competitors because it is closely related to the size of
the storage system.

The compactness and lightness of our applications easily make our customers feel satisfied in every stage including
delivery, installation, space management, and usage. Furthermore, it reduces the overall expenses related to operating
the energy storage system.

RESU

ees :
We could see LG Chem’s dedicated efforts to develop more differentiated ESS. Then, what is the focus regarding
research research and development for ESS?


Kim :
Our top priority is to achieve economic feasibility. From a limited viewpoint, it means to suggest more competitive
prices to our customers. However, if we approach the market in a wider sense, it also means to broaden the market
demands for ESS by creating more tangible benefits. As you know, the ESS market is in its early stages now,
although there has already been a wide consensus on the necessity of ESS due to the environmental regulations
and the call for renewable energy. However, in order to draw the market demands, we need to persuade the
potential customers to realize the substantial benefits of ESS. It also means that we need to apply a different
approach in R&D.

The superior performance and reasonable prices are necessary but it is not enough yet to make the market mature.
A more critical factor is the fundamental understanding of the value chain and market dynamics. In other words,
we need to understand what kind of added-values each stage creates and what different values our new energy
storage systems suggest to the customers, etc. We believe that such a holistic approach would help to design new
business models and to create a higher market demand. In terms of products, we are also focusing on the product
life span, safety, external design and space utilization, etc.

Furthermore, we are trying to adopt more innovative features such as the remote system monitoring and the early
xx-alert function. I believe everyone in the ESS industry will have similar thoughts on technology. All technical
advances lead us automatically towards a more economical solution. Everything is linked together. So if we increase
the performances of the Cell, for example the life span, it would mean that customers can use the system for longer
at the same price. It would automatically decrease lifetime costs of the products. That is why every company in the
industry tries to improve the performance of battery systems, and of course the core of these systems: the
battery cell.

I am pretty sure that most of the manufacturers try to improve life, energy density, charge/discharge power, safety,
capacity degradation, etc. but all the characteristics have a trade-off relation. For example, if you want to increase
power (higher charge/discharge rate of the cell), you have to give up some cost increases. (If there are two 100Wh
cells, and cell A can discharge 100A while cell B can discharge only 50A, it is not hard to see intuitively that cell A
would cost you more) This is why LG Chem has been investing and still is investing a huge amount of money in
R&D, in order to increase important features of the system while minimizing the trade-offs. Due to the same reason,
we have developed two types of cell line up, an energy cell and a power cell, to be able to provide our customers with
a variety of options.

ees:
LG Chem introduced a new residential energy storage system RESU 6.4EX and Expansion pack (3.2kWh) last year.
What are the main strengths of RESU compared to your competitors?


Kim:
We believe that the residential storage market will eventually follow the trend of compactness, lightweight and decent
design. The residential product is pretty different from large-scale storage systems. In case of residential systems both
end-customers and installers have to be considered. With light and compact systems you can provide values not only
to end-customers but also to installers.

First of all, the compact size and light weight which maximize the spatiality are the biggest advantages. RESU 6.4EX
features its super-slim size (W:406mm x H:664mm x D:165mm) small enough to place inside a home. Unlike
competitive models which cannot be installed inside due to their bulky size, our RESU 6.4EX highly reduces the
limitation of installation and space. We also enhanced the aesthetic factors, so it looks attractive and it feels as if it is
an ordinary home appliance. Also, you can expand the energy capacity up to 12.6kWh by connecting additional
Expansion packs (3.2kWh), max 2 units. It allows us to meet the different customers’ needs more efficiently based
on their different energy consumption patterns.

ees:
Finally, could you briefly tell us about your plans for 2016 in terms of R&D? And what are your expectations regarding
the successful implementation of those plans?


Kim:
We expect that 2016 will be more successful and fruitful for our ESS business. So far, we have increased the awareness
of LG Chem in the market while establishing our business foundation. From now on, we expect that we can achieve
more tangible rewards. Most of all, we will focus on residential and grid storage, which is becoming more and more
important, by creating technical breakthroughs. For this, we will continually invest in our Cell technology.

And we will also study the customers’ requirements and regional differences (especially, Europe, Australia, and the US)
in depth to come up with more ifferentiated energy solutions specifically tailored to each target group. As mentioned
earlier, we believe the ESS market has a great growth potential. With our outstanding Cell technology, we will look for
new markets and defend our No. 1 position in the global market.

expect

ees:
Thank you for the interview.



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Press Release Agenda 2016: LG Chem extends market leadership and expertise in the sector of Li-ion batteries and ESS solutions 2016.03.29


Agenda 2016: LG Chem extends market leadership and expertise in the sector of Li-ion batteries and ESS solutions

Jan.28, 2016, Sulzbach – In 2016, LG Chem is focusing on still more powerful Energy Storage System Solutions
(ESS). The leading manufacturer of energy storage systems looks back on a successful year 2015 and forecasts
an exciting development on the ESS market. The South-Korean company significantly expanded its business in
the sector of the energy storage systems in recent years. This development will be continued in 2016. In the
process, the investment is focused on research and development. A new manufacturing plant especially for ESS
solutions is currently under construction in Ochang, Korea. With the production sites in Korea, China and USA,
the production capacity of LG Chem reaches the highest level in the world.

Review 2015: LG Chem market leader for battery energy storage systems
In 2015, LG Chem significantly approached closer to its plan to be the market leader in the sector of grid storages and
ESS solutions for private households. In the business sector grid, LG Chem already became the market leader.
The company surpassed the target sale and a stable basis for future growth was created. Furthermore, LG Chem
expanded its market shares in the field of battery storage systems. During the last month of the year 2015, the
company made the system of nearly 300MWh storage. With this system, about 30,000 private houses were supplied
with energy. Also in its ESS business, LG Chem marked positive results. The company could increase the turnovers in
the last year by 14 times compared to the launch in 2011/2012 and by 2 times compared to 2014. The company
is focusing on the energy storage system RESU6.4EX. The residential solution allows house owners to save the
generated energy with their photovoltaic unit and to use this in the evening hours for their own consumption.
Since the beginning of 2015, LG Chem has sold more than 6,000 ESS solutions to private customers worldwide for
households – most of them in Germany.

 

Outlook 2016: LG Chem regarding Li-Ion batteries settled excellently
Since Li-Ion batteries are always becoming cheaper, the ESS market grows steadily. For 2016, LG Chem forecasts
even a 70 percent increase compared to the previous year. Through self analysis, the company expects a 20
percent share in the global ESS business. “According to our opinion, the ESS branch will experience a real growth
in 2016 for the first time – accompanied by huge competitive pressure. However, LG Chem is steadily settled as
the company has invested into the Li-Ion technology intensively. “Our Li-Ion batteries and ESS products reach the
most advanced solutions worldwide” reports Santiago Senn, Director of Energy Storage Systems at LG Chem Europe.
Especially, the German market is very important for LG Chem in the matter of ESS solutions. However, there is also an
increased demand in the energy provider sector. Municipal utility companies want to provide complete solutions to
private households gradually in the future. LG Chem counts a sector into its special areas in which the provider
possesses a strong partnership. Currently, the company is working on the world’s largest ESS project with a power of
140 megawatts at the energy provider STEAG. On this basis, LG Chem plans to realize further multi-megawatt
hours -projects.


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Press Release Performance plus for solar battery storage: LG Chem and SolaX Power enter into strategic partnership 2016.03.29


solaX

Performance plus for solar battery storage:
LG Chem and SolaX Power enter into strategic partnership

Solution concept based on ESS technology and hybrid inverter provides better performance and energy management

LG Chem, one of the world’s leading manufacturers of energy storage systems, and SolaX Power, a market leader
and manufacturer of battery storage inverters, have announced their strategic partnership with the goal of
establishing a total solution in the solar market. The focus is on the SolaX Power, Hybrid X grid-tied inverter,
which boasts cutting edge technology, to allow the inverter to work both on and off grid, something unique within
it’s class, and the first to market. The SolaX Power solution offers an all-in-one charger for recharging and discharging,
a highly sophisticated DC to AC inverter, and an on board energy management system. The battery storage system
from LG Chem is the optimal enhancement for this solution. By linking both products together, users can take
control the energy demands for their home.

The demand for efficient energy storage systems, in particular for photovoltaic systems, is growing rapidly. With this
new partnership, LG Chem and SolaX Power are responding to the needs of the market. The cooperation between
both international companies joins extensive expertise in the area of ESS (Energy Storage Systems) with many
years of experience and expertise in the inverter industry. The result is a new revolutionary solution for strategic
energy management. “The partnership between SolaX Power and LG Chem highlights the significance of topics like
renewable energies and their efficient use. It is also an indication of our market strength, and our high-performance
product portfolio. We would like to take advantage of the opportunity with LG Chem, to further expand our business
relationships with wholesalers and installers, especially within the European and Australian market” explained
Michael Zhu, Global Sales Director at SolaX Power.

SolaX Power Hybrid X meets RESU6.4EX
The basis for the cooperation is the new hybrid inverter from SolaX Power. The system has the advantage of providing
reliable grid protection, even in the case of a power outage, and thus marks a trendsetting development. Used
together with the RESU6.4EX energy storage system from LG Chem, the SolaX Power Hybrid X provides a significant
performance increase. Extensive tests by the experts from SolaX Power and LG Chem substantiate the compatibility
of both systems and confirm other aspects such as the positive effects of inrush current, current limitation control,
and the potential for recharging and discharging. The new solution will be available to consumers in the next few
weeks. LG Chem wants to further strength its market position with this, as explained by Santiago Senn, Director
Energy Storage Systems at LG Chem Europe. He says: “One of the particular added values for users is the long
service life combined with high reliability, which both the energy storage system and the inverter have in common.
” Paul Summers, Global Marketing and Strategy Director at SolaX Power, notes that, “LG Chem makes an impression,
with a product that meets the demands of a diverse market. The company also protects its technological leadership
which is very important to us. We intend to strengthen the cooperation with LG Chem with our premium partners
and installers. At the same time, we are adding new customers to our bonus program. The result is a win-win
situation for all involved.”

The new solution from LG Chem and SolaX Power is available world-wide, through the company’s distributors.
In addition, both providers are planning on expanding their partner management, and cooperation with distributors.
Additional information about the product portfolio from SolaX Power can be found at www.solaxuk.co.uk for Europe or
www.solaxpower.com for global sales.


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Press Release New energy storage system for solar power: LG Chem expands activities and portfolio in Germany 2016.03.29


New energy storage system for solar power:
LG Chem expands activities and portfolio in Germany

Dec.08, 2015, Sulzbach – LG Chem, leading manufacturer of energy storage systems, intensifies its sales
activities on the German market. The company is focusing on the ESS (Energy Storage Systems) solutions
of Residential RESU®6.4EX. The system was designed especially for the requirements of the solar market.
It allows house owners to store the generated energy from their photovoltaic equipment and to use it in
the evening hours for the private consumption. As the system is not only powerful with a compact
structure but also easy to fix, it meets every requirement by both the user and the installer.

With the dem RESU®6.4EX, users are in the position for the first time to save the generated energy from their
photovoltaic equipment during the daytime hours. After the conversion through a combined inverter, it can be
used subsequently for the self demand. LG Chem offers an alternative to the conventional energy input in the
public electricity network. The outcome is the optimization of the monthly private consumption by up to 70
percents depending on the size of the PV unit and the usage behavior by the user. Consequently, consumers
furthermore achieve the minimization of the monthly energy costs. The ESS system gives, therefore, an
interest not only to owners of a PV unit but also house owners who want to integrate a unit.

Designed for a capacity of 6.4 kilowatt hours, the LG Chem solution supports an electrical charge of 126 ampere
hours – a dimension which sets a new standard on the market for energy storage systems. Furthermore, the
system can be expanded up to two extension modules for 3.2 kilowatt hours, which is thus available as
alternatives for 9.6 and 12.8 kilowatt hours. The RESU®6.4EX is characterized by a very low weight as well
as by its compact structure with the dimension of only 40 x 66 x 16 centimeters. One further positive factor is
the flexible mounting: its installation is possible without difficulty, much effort, and extensive structural work,
and the upgrading of an existing solar unit is very simple. With a service life of 10 years, the energy storage
system furthermore promises a long durability which LG Chem guarantees with a comparably long warranty.

Potential for the German market
With the RESU®6.4EX, LG Chem confronts the challenges of the German solar market. Since the sales in the
sector of photovoltaic have been decreasing in recent years, the company now is making a contribution to the
stabilization of the business. “The German energy market reaches the highest level in Europe in terms of
consumption and production capacity. ESS has an important role to play here“, explains Santiago Senn, Director
of Energy Storage Systems at LG Chem Europe. With RESU®6.4EX, we have developed a technology which
will meet the growing expectations of consumers.” LG Chem plans to expand its activities in the ESS business
in the future. In the course of this expansion, the company will benefit from its expertise as a leading battery
supplier for the automotive industry. There are the battery systems of LG Chem in use for manufacturers like
Audi among others.


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Press Release LG Chem realizes largest ESS project in the world with STEAG 2016.03.29


LG Chem realizes largest ESS project in the world with STEAG

From 2016, large-scale solar batteries will supply power to 10,000 households

The energy revolution is gaining ground. In the months to come, LG Chem, one of the leading manufacturers of
energy storage systems, will be integrating six large-scale batteries in STEAG power plants. As part of the
world`s largest ESS (energy storage systems) project "STEAG GBS (Großbatterie-Systeme)" plants belonging
to the German power supplier in North-Rhine Westphalia and Rhineland Palatinate will be modernized. With
140 megawatt hours of power, the storage systems deliver enough energy to supply 10,000 households per day
with electricity. With this major project, LG Chem is further expanding its international business. The company
is planning to realize further projects in Germany in the future.

LG Chem`s storage systems are due to be commissioned in STEAG`s power plants in Herne, Lünen and
Duisburg-Walsum as well as in Bexbach, Fenne and Weiher from the middle of 2016 until the start of 2017.
The large-scale lithium-ion batteries from the South Korean company have a power capacity of 90 megawatts.
STEAG is thereby rapidly increasing its reliability of supply in the regions mentioned. Integrating the energy
storage systems will enable several thousand households to be supplied with energy every day.

The major project STEAG GBS is being realized through collaboration between LG Chem and Nidec ASI, an
expert in electrical motors and generators. The ESS storage systems, consisting of batteries from LG Chem
and the PCS and EMS solutions from Nidec ASI, are being used by STEAG to generate primary balancing
power. This energy storage capacity is used to offset short-term, unforeseen fluctuations on the grid.
The six systems will be operated independently of the STEAG power plants. Thanks to the ESS technology,
power will be automatically taken off the grid within a few seconds ever there is an over-supply of energy.
Conversely energy will be fed into the grid to keep the frequency constant at 50 Hz.

New potential for the German energy market
With the STEAG GBS project, LG Chem is intensifying its business activities in Europe. Germany will have a
special part to play in this process. "The German energy market is the largest in Europe with annual
consumption of around 550 terawatt hours and a production capacity of 125 gigawatts. Due to the political
developments in the energy industry in recent years, the need for ESS solutions is enormous”, explains
Santiago Senn, Director of Energy Storage Systems at LG Chem Europe GmbH. "With more than 200
projects implemented around the world, such as currently in Hokkaiso, Japan, we have both the technology
and the expertise to make a considerable contribution to this market." According to the market research
company Navigant Research, the ESS market is set to grow from its current level of 1.02 billion euros to
6.98 billion euros within the next five years. LG Chem`s plan is to help shape this development through
its partnership with Nidec ASI in the German market.


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