LG Electronics' stock price has surged over 10% in early trading amid expectations of securing contracts for robot actuators from major global tech companies.
As of 9:56 a.m. on September 7, LG Electronics shares were trading at 222,000 won, up 10.17% (25,000 won) from the previous trading day. At one point, the stock rose as much as 10.42% to 222,500 won.
The increase in stock price is attributed to reports that LG Electronics is in discussions with multiple global tech giants regarding orders for robot actuators. Actuators are key components that combine motors and gear reducers to precisely control the movements of robots, functioning similarly to human joints.
Baek Seung-tae, head of LG Electronics' HS Business Division, stated during a media briefing for 'IFA 2026' in Berlin on September 5 that the company is actively pursuing orders for actuators with several big tech firms. He mentioned that meetings are scheduled for October to discuss production preparations and technical aspects with a specific company.
He expressed a desire to announce contract wins as soon as possible next month. While specific clients and contract sizes were not disclosed, the discussions with major tech companies have sparked optimism among investors that these talks could lead to actual contracts.
Leveraging its motor technology accumulated in the home appliance sector, LG Electronics is developing actuators as a new growth driver in the business-to-business (B2B) market. Earlier this year, at the 'CES 2026', the company unveiled its robot actuator brand 'LG AXIUM', marking a significant step in targeting this market.
Given LG Electronics' long history of developing and manufacturing motors for appliances such as washing machines, air conditioners, and refrigerators, the company is positioning its existing technology and production capabilities as a competitive advantage in the robot parts business. Currently, the company is producing initial quantities of actuators at its Changwon plant and preparing to meet future customer demand.
The market is closely watching the upcoming meetings with big tech companies next month to see if they will result in actual contract wins. If successful, this could mark a significant expansion of LG Electronics' robot business and increase the proportion of its B2B operations within its appliance-focused business structure.
* This article has been translated by AI.
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