LG Energy Solution's headquarters in Yeouido, Seoul / Korea Times file

By Kim Jae-heun

LG Energy Solution has launched new in-house companies named KooRoo and AVEL to expand its battery business ecosystem, the company said Wednesday, as part of its plan to keep pace with industry developments.

KooRoo and AVEL will begin operations later this month related to Battery as a Service (BaaS) and Energy as a Service (EaaS), respectively, starting this month.

BaaS is a business model that provides various services based on the data generated throughout a battery's life cycle. EaaS refers to a business model that uses distributed renewable energy resources and energy storage systems (ESS) to help streamline the power grid.

KooRoo is a battery swap service (BSS), offering customers a convenient electric motorcycle battery pack-swapping service. The company plans to push for the development of BSS-only battery packs and stations first and then expand the ecosystem of electric motorcycles by utilizing the collected data in the future.

LG Energy Solution CEO Kwon Young-soo / Courtesy of LG Energy Solution

AVEL is an energy aggregation (EA) business.

It will start off with integrated management of renewable energy power grids using ESS, mainly on Jeju Island. After that, the company will develop a system that can accurately predict the amount of renewable energy generation and efficiently utilize and manage the energy stored in ESS.

LG Energy has further prepared various institutional devices for the independent operation and stable settlement of its in-house companies.

In the early days of their launch, KooRoo and AVEL will be operated as independent organizations under the supervision of a chief strategy officer, while building business operation infrastructure rapidly with all-round support from related business units in the group.

"We expected the newly launched 'companies-in-companies' to overcome the fear of failure and push forward with innovative thinking and endeavors to increase the future customer value for the company. We will work to make LG Energy a company that seeks mutual growth with individual workers through introduction of more independent in-house companies in the future," LG Energy CEO Kwon Young-soo said.