“Strengthening market dominance and dominance ahead of China and Japan”
Construction of the second factory jointly with GM is also promoted.
LG Energy Solutions will invest 7 trillion won over the next five years in the construction of an electric vehicle battery plant in the United States.
Joe Biden is to build a local battery production system in line with the US administration’s Green New Deal policy. An additional joint venture plant with General Motors (GM), which announced the suspension of sales of internal combustion locomotives in 2035, will also be built. It is a strategy to expand its dominance by preoccupying the US market ahead of its Chinese and Japanese competitors.
LG Energy Solutions announced on the 12th that it will invest more than 5 trillion won in the construction of a battery production plant in the United States by 2025.
Including the construction of an additional 2 trillion won plant with GM, the total investment is expected to reach 7 trillion won.
LG Energy Solutions plans to accelerate investment by selecting two candidate sites for factory sites in the first half of the year. The company plans to produce electric vehicles and high-capacity energy storage (ESS) batteries at least 70 gigawatt hours (GWh) at multiple new factories. It is a scale capable of producing about 1 million electric vehicles with a mileage of 500 km or more. Goldman Sachs predicted that the electric vehicle market, which was only 300,000 last year, will grow to 8 million units by 2035 on an annual average of 25%.
LG Energy Solutions is also promoting the construction of a second plant in a joint venture with GM. The two companies are currently building a 35GWh battery production plant in Rosetown, Ohio, with a cost of 2.7 trillion won. When the planned investment is completed, LG Energy Solutions will secure a battery production capacity of 145GWh in the US alone. Jong-Hyun Kim, President of LG Energy Solutions, said, “We will secure battery production capacity in advance and establish a stable localized supply chain system from R&D to production to establish ourselves as the best partner in the US electric vehicle and ESS market.”
/ Reporter Han Jae-young [email protected]
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