GM joint venture decided to plant 2 in the first half of the year
Battery production capacity of 70GWh target
LG Energy Solutions accelerates its market penetration after the US International Trade Commission (ITC) ruling. It decided to invest more than 5 trillion won in the US.
On the 12th, LG Energy Solutions announced that it will invest more than 5 trillion won on its own in the US market by 2025. A joint venture with General Motors (GM) will also decide to invest in the second plant in the first half of the year. The investment background is that it is to lead the eco-friendly industry in the US market in line with the US Green New Deal policy.
When investment is made, LG Energy Solution’s own production capacity will increase to a total of 75 gigawatt hours (GWh) along with the existing Michigan plant (5GWh). In addition to pouch batteries for electric vehicles and energy storage devices (ESS), they are also entering the field of cylindrical batteries for electric vehicles, which are rapidly growing recently.
It has decided to select at least two candidate sites in the US by the first half of this year. After that, the company plans to make full-fledged investment through promptly reviewing the suitability of the business and deciding on the board of directors.
If additional production capacity of 70GWh is secured, it is expected that more than 10,000 new jobs can be created, including 4,000 direct employees and 6,000 employees during the plant construction period. In the case of direct employment in the U.S., 1,400 in the existing Michigan factory and 1,100 in a joint venture with GM located in Ohio, totaling about 6500.
LG Energy Solutions plans to determine the specific investment scale and site for the second plant in the first half of the year together with GM. It is expected to be of a size similar to that of the first plant in Ohio. The goal is to supply stable batteries for GM’s future electric vehicle projects.
LG Energy Solutions will secure a total production capacity of more than 140GWh by 2025, with an independent production capacity of 75GWh, and if the construction of a similar-sized plant 2 following UltiumSells’ 35GWh plant, a joint venture with GM currently under construction. It is a prospect.
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