LG Energy Solution Tests Chinese PLCs: Battery Manufacturing Cost Revolution

12 mars 2026

LG Energy Solution Tests Chinese PLCs: Battery Manufacturing Cost Revolution

In a move that could reshape the global industrial automation landscape, LG Energy Solution, the world's second-largest battery manufacturer, is actively testing Chinese programmable logic controllers (PLCs) and servo control systems from Inovance Technology. This strategic shift represents more than just a cost-cutting measure; it signals a fundamental change in how major manufacturers approach aut

3 min readContent reviewed 1 October 2026

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The timing couldn't be more critical. With battery production equipment markets projected to reach $37.59 billion by 2029 and growing at a staggering 23.2% CAGR, every percentage point of cost reduction translates to millions in competitive advantage. LG Energy Solution's exploration of Chinese PLC alternatives comes as the company faces revenue pressures, having seen a 28% decline to $18.42 billion in 2024 while simultaneously aiming to double its revenue in coming years.

Inovance Technology, the Chinese automation company at the center of this development, has been quietly building momentum in global markets. With 2024 revenue reaching $5.2 billion, a 22% year-over-year increase, and R&D investments exceeding $440 million, Inovance is no longer just a budget alternative. The company's comprehensive portfolio includes:

What makes Inovance particularly compelling for battery manufacturers is their established track record in China's domestic market, where they've already supplied control systems to battery giants like CATL and BYD. This real-world validation in demanding production environments gives confidence to international adopters like LG Energy Solution.

The financial implications of LG Energy Solution's testing are substantial. According to industry analysis, Inovance control systems are priced at approximately:

For battery manufacturing equipment where control systems represent a significant portion of total cost, these savings could translate to 15-25% reductions in overall equipment pricing. Given that lithium battery manufacturing equipment was valued at $9.60 billion in 2024 and projected to reach $30.45 billion by 2033, the potential savings across the industry are enormous.

This development occurs against a backdrop of shifting market dynamics in industrial automation. While traditional players still dominate:

Chinese brands are making significant inroads, particularly in price-sensitive applications. In China's $2.4 billion PLC market, foreign giants still command 70% share, but domestic brands like Inovance are growing rapidly, especially in frequency conversion and servo systems where they've achieved market leadership.