LG Energy Solutions to Invest $4.5 Billion in Electric Vehicle Battery Production in the U.S. Through 2025
【Summary】LG Energy Solution said on Thursday it plans to invest more than $4.5 billion in its U.S. battery production business through 2025 and add 4,000 jobs as it considers building at least two new U.S. plants. LG said the investment will add an additional 70GWh of U.S. battery production capacity.
LG Energy Solution said on Thursday it plans to invest more than $4.5 billion in its U.S. battery production business through 2025 and add 4,000 jobs as it considers building at least two new U.S. plants, Reuters reports.
The South Korean company is a unit of LG Chem.
LG said the investment will result in an additional 70GWh of U.S. battery production capacity.
The company declined to say where in the United States it is considering a new battery manufacturing plant, but said it would decide on the new location in the first half of the year.
Denise Gray, president of LG Energy Solutions Michigan unit, told Reuters that the investment would indirectly create another 6,000 jobs during construction and was being made to respond to the growing electric vehicle market.
"We are eager to expand our production capacity so that it can meet the needs of the numerous global automakers across the U.S. and Europe," Gray said.
LG and automaker General Motors have already committed to an investment of $2.3 billion in a joint venture battery factory in Ohio that will build GM's new Utium batteries for its future EVs. That plant is currently under construction.
The two companies are also in talks to build a $2 billion battery factory in Tennessee. A deal for the second factory could be announced as early as next week. Both companies have confirmed they are in discussions for the second factory.
"This is more about (having a) very proactive and preemptive investment plan prior to confirmation of demand from our customers," LG Energy Solution Senior Vice President Chang Seung-se said.
"By adding this capacity earlier, we can quickly respond to market demand and customers' orders," he told reporters.
Last week, LG told Korean reporters that it plans to build a U.S. factory where it would be able to make battery cells for Tesla, as well as for the company's energy storage systems. The plant will also supply batteries to other U.S. and global customers, as well as startups.
Although LG It did not name potential customers for its U.S. battery factory, one of the sources said it was hoping Tesla would buy its batteries, according to the Reuters report.
Over the past decade, LG Chem has become one of the world's biggest suppliers of EV batteries to the auto industry. The company stock has nearly doubled since June 2020 on growing demand for EV batteries.
LG's stock is up over 5% to 939,000 KRW (US$ 830.35) today after the reports of the planned battery factory.
LG is one of Tesla's battery suppliers for its China-made vehicles along with China's Contemporary Amperex Technology Co. Limited (CATL), while Japan's Panasonic builds batteries in a joint venture with Tesla for its US-built vehicles, which are exported around the world. CATL has a seperate supply deal with German automaker BMW.
The world's automakers are entering into supply deals with battery makers to ensure that they'll have the batteries needed to ramp up production of EVs over the next decade.
In addition to building batteries in a joint venture with GM, LG is supplying the batteries to luxury-electric vehicle startup Lucid Motors for the Lucid Air sedan which is being built at the company's new factory in Arizona that's nearing completion.
resource from: Reuters
New Premium Electric Vehicle Brand Zeekr Is Exploring IPO Options in the U.S. or Hong Kong, According to Sources
Ford Announces the Largest Utility Agreement in the U.S. History to Assemble All of its Vehicles in Michigan Using 100% Renewable Energy by 2025
Lucid’s New ‘Stealth Look’ Appearance Package for the Electric Air Sedan Compliments its High Performance DNA
Volkswagen Announces Pricing and Styling Updates for the 2023 ID.4 Electric SUV, Which is Being Assembled in Tennessee
Ford Unveils the F-150 Lightning Special Service Vehicle, a Fully Electric Pickup for Police Departments
Volkswagen Group China Unveils its ‘Flying Tiger’ Electric Vertical Take-Off and Landing (eVTOL) Passenger Aircraft Prototype
Volkswagen Starts Production of the Electric ID.4 SUV in Tennessee, Presents New Competition for Tesla, GM and Ford
Lucid Group Hires Key Executives that Formerly Worked for Mercedes-Benz and Tesla as it Prepares for Global Expansion and Production Ramp Up
- General Motors is Building a Coast-to-Coast DC Fast EV Charging Network in the U.S. in a New Partnership with Travel Center Operator Pilot Company
- Ultra-Fast EV Charger Developer FreeWire Technologies Launches its New Global Headquarters, R&D, and Manufacturing Facility in Newark, California
- Autonomous Truck Developer Embark Trucks Adds Freight Carrier U.S. Xpress to its Partner Development Program
- Toyota Unveils the 2023 Crown, a Lifted Hybrid Sedan With 340 HP
- Tesla Raises Prices in the U.S. as Inflation Chips Away at its Profit Margins
- Tesla’s Battery Supplier Panasonic is Close to Selecting the Site of its New U.S. Battery Plant
- Tesla Challenger NIO Inc Reports its Highest-Ever Monthly Sales in June
- Automakers Urge Consumers to Buy an EV Before Tax Credit Changes
- EV Charging Provider ChargePoint to Install Hundreds of Chargers at Apartments and Condo Complexes Across California
- Tesla's Battery Supplier CATL Unveils its New ‘Qilin’ Battery That Can Deliver 600+ Miles of Range to EVs