LG Energy Solution Expands Battery Territory… Invested more than 5 trillion won in the US (total)

By 2025, two independent factories, two factories with GM were established… US production 140GWh within 5 years

Cylindrical battery advances to the US… “Building a stable supply chain in the US through preemptive investment”

(Seoul = Yonhap News) Reporter Kim Young-shin = LG Energy Solutions will make a large-scale investment of over 5 trillion won in the United States by 2025. It is to make preemptive investments in eco-friendly industries in line with the acceleration of the electric vehicle conversion according to the Green New Deal policy.

LG Energy Solutions announced on the 12th that it will invest more than 5 trillion won by building two or more battery production plants independently in the United States by 2025. It also decided to invest in the second plant, a joint venture with General Motors (GM), in the first half of the year.

LG Energy Solutions plans to secure an additional battery production capacity of 70GWh or more independently in the US by investing more than 5 trillion won by 2025.

When the investment is made, in addition to the existing Michigan plant (5GWh), it will have a total production capacity of 75GWh in the United States.

In particular, LG Energy Solutions decided to build a cylindrical battery factory for electric vehicles that is growing rapidly in the United States. Currently, LG Energy Solutions’ cylindrical battery factories are only in Korea and China.

LG Energy Solutions explained that it will present a differentiated portfolio in the US by adding cylindrical batteries in addition to pouch batteries for electric vehicles and energy storage devices (ESS).

LG plans to make full-fledged investments after selecting at least two candidate sites in the US by the first half of the year.

The candidate site is undecided, and starting with the announcement of this investment plan, we will start searching for a site.

Regarding the investment fund, LG Energy Solutions said, “In order to respond to the growth of the electric vehicle market, it is necessary to invest 3 to 4 trillion won each year in the construction of a new plant.” It is invested in the US, so there is no problem with securing funds.

LG Energy Solutions has been promoting the’Green Field Project’ since the second half of last year, in order to actively contribute to the US Green New Deal and eco-friendly policies.

This is because global automakers review local production in the U.S., and LG Energy Solutions needs to quickly secure battery production capacity while discussing expansion of U.S. business with several automakers.

The company predicted that if additional 70GWh production capacity is secured through this investment, it will be possible to create more than 10,000 new jobs, including 4,000 direct employees and 6,000 employees during the construction of the factory.

The number of direct US employees will reach 6,500, with 1,400 existing Michigan factories and 1,100 GM joint ventures in Ohio combined.

In addition, LG Energy Solutions actively promotes localization by advancing with partner companies, and based on the experience of establishing an electric vehicle battery research corporation in the U.S. since 2000 and continuing investment It plans to focus on establishing a supply chain system (supply chain) in the United States.

LG Energy Solutions is the only battery company that has secured three major US automakers (GM, Ford, and Chrysler) as customers based on experience, including the establishment of an electric vehicle battery research center in the United States in 2000 and the establishment of a factory in Michigan in 2012.

In addition, LG Energy Solutions plans to make a new factory to be built in the United States into a green factory that operates only with 100% renewable energy. The Michigan battery plant has switched to a green factory in the second half of last year.

Additional investment in the joint plant with GM is expected to determine the specific scale and site in the first half of the year.

Currently, GM and Ohio are constructing the 1st plant’Ultium Cells’ with a scale of 35GWh, and the 2nd plant is expected to be similar to that of the 1st plant. The site for the second plant has not yet been confirmed, but some foreign media reported that it will be established in Tennessee.

If LG Energy Solutions has both the 1st and 2nd plants in joint ventures with GM, it will have a total production capacity of 140GWh or more in the United States in addition to its own production capacity of 75GWh by 2025.

LG Energy Solutions announced that it will invest in preemptively securing battery production capacity in line with changes in the US market environment, such as the US government’s Green New Deal policy, supply chain changes, and automakers’ internalization of batteries.

SK innovation on the 5th[096770]The investment plan was announced on the same day after a week after the final victory of the suit by the International Trade Commission (ITC) and “We will convert the existing player stock and post investment strategies into preemptive expansion investment in response to market growth.” .

LG Energy Solutions also announced that it has already received significant orders for electric vehicles released in the US by European automakers as well as the US, and is actively discussing to expand large-scale projects in the US.

In addition, it is reported that while mass production of electric vehicles by US startups using LG Energy Solution batteries continues, it has recently secured significant orders for US ESS companies.

President Kim Jong-hyun said, “The US Green New Deal policy will further accelerate the growth of the ESS market as well as the electric vehicle market.” I will contribute to success,” he said.

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2021/03/12 07:29 sent