Kia and LG
Overview
Kia (기아) and LG are, respectively, South Korea's representative automaker and a comprehensive electronics and chemicals conglomerate, and they are rapidly expanding points of collaboration in electric vehicle (EV) batteries, automotive electronic components, and software-defined vehicles (SDVs). The two companies belong to different parent groups—Hyundai Motor Group and LG Group—but are connected through a substantive value chain, including an Indonesia battery joint venture and the supply of automotive displays, communication modules, and camera sensors. This document covers basic information on both companies, their collaboration structure, and industry changes in 2024–2025.
Main Content
What Is Kia (起亞)
Kia began in 1944 as Kyungsung Precision Industry, changed its name to Kia Industries in 1952, and grew into a leading South Korean automaker after producing bicycles, three-wheeled vehicles, and passenger cars. It was acquired by Hyundai Group during the 1998 financial crisis and is now a core affiliate of Hyundai Motor Group. In 2021, it changed its name to "Kia Corporation," fully overhauling its brand logo and slogan ("Movement that inspires"). Representative models include the Sportage, Sorento, Carnival, K5 and K8, and the EV lineup of EV6, EV9, EV3, and EV4. Production bases are distributed across South Korea (Hwaseong, Gwangju, and Sohari), the U.S. state of Georgia (Hyundai Motor Group Metaplant America), Žilina in Slovakia, Mexico, and Anantapur in India, with global sales around 3 million units per year.
What Is LG Group
LG Group is a conglomerate that began in 1947 as Lak Hui Chemical Industrial Company and was reorganized under the name LG Group in 1995. Major affiliates include LG Electronics, LG Energy Solution, LG Chem, LG Display, LG Innotek, LG Uplus, LG H&H, and LG CNS. In particular, LG Energy Solution is a leading player in the global EV battery market; LG Electronics is expanding its infotainment and automotive electronics business through its Vehicle component Solutions (VS) division; LG Display has strengths in automotive OLED panels; and LG Innotek has strengths in automotive camera and sensor modules.
Collaboration Structure: Batteries
The most direct point of contact is batteries. Hyundai Motor, Kia, and LG Energy Solution established a battery cell joint venture (HLI Green Power) in Indonesia, creating a system to supply cells to EV production bases in Southeast Asia. In addition, Kia's EV lineup operates a multi-supplier system involving LG Energy Solution, SK On, and others, with the supply chain divided by form factor, such as cylindrical and pouch. Since battery costs, tariffs, and subsidy requirements determine automaker profitability, the two companies' bargaining power is closely intertwined.
Collaboration Structure: Automotive Electronics, Displays, and Connectivity
Automotive electronics is another axis. LG Electronics supplies automotive infotainment and telematics modules; LG Display supplies OLEDs for clusters and center fascias; and LG Innotek supplies camera, lidar, and radar modules. In connected-car communications and vehicle management services, LG Uplus participates as a communications infrastructure operator. As electronic components account for a growing share of the cost of EVs and autonomous vehicles, the share of joint development between automakers and automotive electronics companies is also increasing.
Dual Relationship of Competition and Cooperation
The two sides are both collaborators and potential competitors. LG Electronics entered the powertrain components business, including drive motors and inverters, through its joint venture with Magna (LG Magna e-Powertrain), while Kia is expanding into PBVs (purpose-built vehicles), mobility services, and software monetization. As vehicles become closer to "electronic products on wheels," the business boundaries between home appliance and electronics companies and automakers are expected to continue blurring.
Latest Trends
The key words for 2024–2025 are the "EV chasm (temporary demand stagnation)" and "tariffs and supply chain reorganization." Kia expanded its mass-market EV lineup by launching the EV3 in Europe and South Korea in 2024, and in 2025 is pursuing a two-track strategy by unveiling the EV4, the pickup truck Tasman, and the first PBV model PV5 in succession while also increasing the share of hybrids (HEVs). With the start of operations at Metaplant Georgia in the United States, it secured local production capacity in North America, but the U.S. imposition of automobile tariffs and changes to the IRA tax credit policy in 2025 have emerged as major variables for profitability.
Due to slowing EV demand, LG Energy Solution's performance underwent adjustment in 2024, and in 2025 it is responding with mass production of 46-series cylindrical batteries, expanded North American production, and diversification into the ESS business. LG Electronics is focusing on improving profitability by steadily increasing automotive electronics revenue; LG Display is expanding automotive OLED supply; and LG CNS has begun expanding its AI transformation (AX) business. Common tasks for both companies are establishing standardization, security, and OTA ecosystems in response to the transition to software-defined vehicles (SDVs), and reorganizing origin and mineral procurement systems to comply with U.S. and EU supply chain regulations.
Related Topics
- [[Hyundai Motor]]
- [[LG Energy Solution]]
- [[Electric vehicle]]
- [[Software-defined vehicle]]
- [[Hyundai Motor Group]]