LGES pulls the brake on U.S. investments for the time being
South Korean battery manufacturer LG Energy Solution is reportedly reassessing investments of 1.3 billion dollars in a plant in Arizona because of an ”unfavorable economic situation” in the USA.
The company said it was reviewing its investment plans in light of "unprecedented economic conditions and investment circumstances in the United States”, according to media reports, such as Korea Bizwire and Bloomberg.
LGES unveiled plans in March to build its second standalone electric vehicle (EV) battery factory in America. The move was seen as part of LGES' expansion efforts in North America as demand for cylindrical batteries used in electric vehicles and other power tools increases.
However, the plan has been put on hold as the investment in the new plant has soared due to global inflation and the recent sharp devaluation of the Korean currency. It is expected to take at least four to six months for LGES to make its decision on the Arizona facility.
Should the Queen Creek, Arizona plant be completed, it would be the first cylindrical battery plant operated by a South Korean battery manufacturer.
LGES had planned to commission the plant in the second half of 2024 and aim for an annual production capacity of 11 gigawatt hours.