LG Energy Solution is looking at building at least two new factories in the United States for making batteries and has made plans for making an investment of more than US$4.5 billion in the country for the purpose by 2025 which would result in the creation of about 4,000 new jobs, said an executive of the company.
Through this investment, the company y would be able to generate an additional 70GWh of US battery production capacity, said the South Korean supplier which is a unit of LG Chem. The ocpany however did not say anything about the possible location of the new battery manufacturing plant with the US.
The company’s decision to make the investment was taken keeping in mind the growing demand for electric vehicles and there will be generation of about 6,000 jobs during the construction period, said Denise Gray, president of LG Energy Solution’s Michigan unit.
“We are eager to expand our production capacity so that it can meet the needs of the numerous global automakers across the US and Europe,” Gray said.
Talks for construction of a second joint venture cell manufacturing plant in Tennessee are being held at an advanced stage between LG and General Motorsto. The new plant is expected to cost more than US$2 billion and is expected to be announced by the company later this month. The first factory through the LG-GM joint venture plant is almost completed in Lordstown, Ohio. Both companies have confirmed they are in discussions for a new plant.
There is a virtual battle between LG Chem and its close rival SK Innovation following allegations of LG Chem that its rival had stolen trade secrets. In February, the charge of LG Chem was supported by the US International Trade Commission (ITC). However that decision is being attempted to be overturned by SK Innovation and is lobbying at the White House and has also warned that it will be forced to stop production on a new factory in Georgia.
The latest announcement from LG Energy Solution had nothing to do with the ITC review, said company executives.
“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
(Adapted from ChannelNewsAsia.com)