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LG Energy Solution Announces Plan for Replacement of Certain Energy Storage System (ESS) Batteries to Strengthen Confidence in the ESS Industry and Further Enhance Safety

The Replacement Program Prioritizes Safety to Uphold LG Energy Solution's Quality-First Principles

• The proposed free replacement program encompasses ESS batteries manufactured between April 2017 and September 2018, and expands existing replacement programs underway in certain markets.

• LG Energy Solution is announcing the replacement program because of reports that some affected ESS products are overheating, presenting potential safety hazards to customers.

• LG Energy Solution will undertake global inspections, replacement, and safety-enhancing upgrades of battery management and control software for the affected ESS units in cooperation with its customers and with those global product safety authorities responsible for product recalls in relevant markets.

• LG Energy Solution will cover related costs for the proposed replacement program.

SEOUL, South Korea, May 25, 2021 /PRNewswire/ -- Jong Hyun Kim, President of LG Energy Solution, said, "customer safety and product quality are the highest priority in our decision-making process. With the announcement today, we will further enhance the safety of our products, as LG Energy Solution strives to make the world's safest batteries."

As a market-leading company with customer safety and product quality as its top priority, LG Energy Solution is announcing a replacement program for certain ESS batteries. LG Energy Solution is conducting this precautionary action and will work in concert with those global product safety authorities responsible for product recalls in the jurisdictions where LG Energy Solution's ESS batteries have been sold.

Replacement Scope and Details

ESS batteries subject to the announced program cover lithium-ion battery cells for certain ESS products manufactured between April 2017 and September 2018. LG Energy Solution conducted a review of its manufacturing and quality assurance processes in relation to reported incidents that occurred due to the overheating of the batteries subject to this program. Based on its review, LG Energy Solution has determined that there were certain issues in the early production processes for electrodes used in these potentially affected ESS batteries.

LG Energy Solution's battery replacement program will provide free state-of-the-art batteries at no additional charge that incorporate manufacturing process improvements that further enhance the safety of its ESS batteries. All proposed safety measures, including the replacement of the potentially affected ESS batteries, will take place after consultation with customers.

LG Energy Solution will also implement remote modifications to the potentially affected batteries, where possible, to reduce the potential for overheating while owners of the affected ESS units wait for their replacement units. In addition, LG Energy Solution will be updating the battery diagnostic and control software at domestic and overseas sites. Field inspections will also be undertaken to monitor and minimize the potential for further incidents.

Where applicable, owners of potentially affected ESS batteries will be directly contacted if their battery is subject to the replacement program.

Further details regarding how to participate in the free replacement program will be published shortly in cooperation with relevant global safety regulators responsible for these communications, and further information will also be available on LG Energy Solution's website.

As a leading battery company, LG Energy Solution will strive to do its utmost to strengthen confidence in the ESS battery industry, by using the announced replacement program as an opportunity to promote the highest safety and quality standards for its products in the industry.

LG Energy Solution is continuously re-evaluating its company-wide safety and quality processes and is committed to undertaking prompt and effective action if any issues arise that may affect customer safety. LG Energy Solution will continue to take preemptive action to ensure that customer safety remains its highest priority.

About LG Energy Solution

LG Energy Solution is a global leader delivering advanced lithium-ion batteries for Electric Vehicles (EV), Mobility & IT applications, and Energy Storage Systems (ESS). With 30 years of experience in advanced battery technology, it continues to grow rapidly towards the realization of sustainable life. With over 23,000 employees working within its robust global network that spans the US, Europe, Asia, and Australia, LG Energy Solution is more committed than ever to developing innovative technologies that will bring the future energy a step closer. For more information, please visit https://www.lgensol.com.

CONTACT: Linh Tran (Director of Sales, Residential ESS, LG Energy Solution Michigan Inc.), Tel: 4157154673, email: ltran@lgensol.com