LG Energy Solutions (part of South Korea’s LG Chem Ltd.) plans to invest more than $4.5 billion (KRW 5 trillion) to further expand its battery production capacity in the United States.
The latest round of investment will help secure an additional capacity of 70 GWh in the US and create more than 10,000 new jobs.
"The goals of the U.S. president and automakers will be a propelling factor in the growth of the country's electric vehicle and energy storage systems markets," said Jong Hyun Kim, CEO of LG Energy Solution.
"LG Energy Solution is dedicated to expanding its battery production capacity and structuring a stable, localized supply chain that provides everything from R&D to production. Through these commitments, the company aims to secure its leadership position as a strong, essential partner in the EV and ESS market and contribute to the success of the U.S. auto industry and economy," he added.
In addition to the US investments by the company, LG Energy Solutions and General Motors Co. are also in talks to build a second joint venture plant in the country which will further increase its cell production capacity. The second JV will be similar in terms of scale and size to the $2.3 billion facilities currently under construction in Lordstown, Ohio, and will help manufacture next-generation EV cells based on advanced technology.
The new LG Energy Solution facility will produce pouch cell batteries to be used in EVs and energy storage systems (ESS), as well as cylindrical cell EV batteries that are currently rapidly increasing in demand the company said. LG Energy Solution claims to be the first and only battery company to hold the experience and technology to mass-produce these products.
LG Energy Solutions have developed these plans over the last year with the view to meet the growing demand for electric vehicles in the US. With increasing pressure for domestic production for EV components in the US, the company intends to expand its production capacity to meet the needs of global automakers across the US and Europe alleviate industry concerns around battery supply sufficiency and accelerate the expand its position in the US.
- By Shraddha Kakade,
Asst. Editor, Emerging Technology News.