Promoted’Joint 2 Factory’ in Tennessee
In construction, the total production capacity is 65GWh.
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LG Energy Solutions and General Motors (GM) are promoting the construction of a second factory jointly in the United States, strengthening cooperation in the electric vehicle business. This is the result of the agreement between GM, which is seeking to secure a stable battery supplier, and LG Energy Solutions, which is seeking to expand its dominance in the battery market amid the expanding global electric vehicle market. LG Energy Solutions, which has partnered with GM to transform into an electric vehicle company in 2035, is expected to further strengthen its dominance in the US battery market.
According to related industries on the 5th, LG Energy Solutions and GM are discussing the construction of a battery plant in Tennessee, USA. It is reported that the final site will be prior to selection, and the specific investment scale will be announced directly during the first half of this year. An official from LG Energy Solutions said, “We are discussing the construction of a battery factory, but there has been no confirmation.” The Wall Street Journal (WSJ) quoted a source on the 4th (local time) and reported that the new plant will be the size of a battery joint venture currently being built by LG Energy Solutions and GM in Rosetown, Ohio. The Ohio joint venture, which will invest $2.3 billion (2.700 billion won), will be built on a scale of 30 gigawatt hours (GWh) and will be put into operation next year.
When the new joint-venture plant enters the scale of the Ohio plant, the total battery production capacity of LG Energy Solutions in the US will reach a total of 65GWh. LG Energy Solutions has been operating its own 5GWh battery factory in Holland, Michigan since 2012. The batteries produced here are supplied to Ford, Chrysler and GM. The Ohio plant’s batteries are 100% supplied to GM’s next-generation electric vehicle models, including the Cadillac brand. The partnership that began with the supply of GM Chevrolet Volt batteries launched in 2009 is expanding and developing.
GM has announced that it will cease production and sales of internal combustion locomotives worldwide in 2035, so in fact, the US battery market is highly likely to become the dominant stage for LG Energy Solutions. According to SNE Research, LG Energy Solutions’ market share in the US and Europe excluding China last year was 33.1%, ahead of Panasonic (31.6%). An industry insider said, “Chinese CATL is announcing aggressive global expansion plans, but it is as if it is blocked from entering the US market due to trade conflicts.” Panasonic or so is operating a Tesla-only giga factory. The scale is also far less than that of LG Energy Solutions. As SK Innovation lost a lawsuit in infringing business secrets with LG Energy Solutions, there is a lot of uncertainty over additional investments.
/ Reporter Han Jae-young [email protected]
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