LG Energy Solution luring start-ups through 'battery challenge'

A few months after announcing a $5 billion, 45 gigawatt battery plant in Windsor, Ont., LG Energy Solution (LGES) is looking to tap into next generation battery technology through a challenge that seeks partnerships with start-ups in the battery tech sector.

The company is hosting its third “Battery Challenge” to “identify start-ups for potential investment and collaboration” to keep pace with the fast developing industry.

Any start-ups from around the world with a specialty in battery-related technology can take part in the challenge, with a focus on three major categories: battery technologies on materials, management and control, and smart factory.

“By utilizing programs like ‘Battery Challenge’ and ‘Open Innovation,’ LGES aims to maintain its leading position in the battery industry,” says Youngjoon Shin, CTO (chief technology officer) of LG Energy Solution. “LGES will continue to expand battery-related research with promising start-ups as well as distinguished scholars and academic organizations around the world.”

Up to 10 start-ups will be selected as finalists, each receiving funding as well as a chance to collaborate with LGES.

Yvonne Pilon, the president of Windsor-based WE-Tech Alliance, says there are other examples of start-up collaborations involving automakers like Waymo and FCA, Ford, Lyft and Argo AI self-driving vehicle project and GM’s recent collaboration with self-driving car company, Cruise.

“You're already starting to see this and I can only see that's going to be accelerated because everyone's trying to be the best,” Pilon says. “I think why we see these types of things happening is what start-ups can give these larger global companies, such as helping bridge the innovation gap. They provide flexibility and innovation. They can even solve some of the talent shortages that we're seeing in the industry.”

LGES and Stellantis are investing heavily in battery research and development, including the expansion of the existing research facility in Windsor with the addition of 700 engineers focused on EV and battery technology.

That’s on top of the 2,500 jobs that will be created with the new EV battery manufacturing facility, which will be known as NextStar.

Pilon points to the agility and speed at which the start-up culture is moving and says larger companies are wise to provide funding to help scale smaller enterprises with bright ideas to form partnerships that can help both entities.

“It's just as important to help grow and support these start-ups as it is to help attract larger companies. But I think now we're starting to see where they collide,” Pilon says, adding the successful companies could also create a presence in Windsor-Essex down the line to help form the supply chain cluster establishing around the LGES-Stellantis battery plant.

The contest is also open to academic institutions, and Pilon believes the University of Windsor’s charge lab could be a good candidate to apply.

“The start-ups have some of the best talent, they move faster, they're more innovative,” she says. “And I just think it's going to be very good news not only for our regional community, but from our national perspective as well.

The contest goes live Aug. 1, 2022 and remains open for submissions through its official website until Sept. 16, 2022.