LG to invest $4.5 billion to expand US battery production
LG Energy Solution says that by the end of 2025, the company will invest more than USD 4.5 billion (KRW 5 trillion) in the company's own U.S. business to further expand its battery production capacity.
The company says that this new investment will allow the LG Energy Solution to create a total of over 10'000 more jobs for new LG employees and subcontractors while securing an additional 70GWh in just the U.S. alone, and will be in addition to current and past investments. In addition to the Green Field Project, LG Energy Solution and GM are currently discussing plans to build a second joint venture plant in the U.S., which will even further increase its cell production capacity, a press release reads. This second JV plant is expected to have a production capacity scale similar to the two companies' first plant, and is set to manufacture next generation EV cells based on advanced technology. LG Energy Solution developed these plans over the last year to rapidly mobilise its Green Field Project in a full-fledged effort to ensure its position in the growing U.S. electric vehicle (EV) market. "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," says Jong Hyun Kim, CEO of LG Energy Solution, in the press release. "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." LG Energy Solution established its first U.S. research facility in 2000 and invested USD 600 million to secure a production capacity of 5GWh at its first Michigan plant built in 2012. In 2019, the company entered into a joint venture with General Motors (GM) to construct a USD 2.3 billion battery plant in Ohio, which is slated for completion in 2022 to create an annual capacity of 35GWh. The latest Green Field Project will give the company a total production capacity of over 110GWh in the U.S. The company says it intends to use regional subcontractors in tandem with the additional production capacity expansion to strengthen the local economies at the new facility. Within the first half of 2021, LG Energy Solution will select at least two location candidates for its factory intended to manufacture various types of batteries in the U.S. 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.