LG Energy Solution will invest $4.5 billion to boost American battery manufacturing, expanding its U.S business.

by Mar 12, 2021

LG Energy Solution announced that by the end of 2025, the company will invest more than $4.5 billion (KRW 5 trillion) to further expand its battery production capacity in U.S to be used in electric vehicles (EVs) and energy storage systems (ESS). This new investment will allow the company to create a total of over 10,000 more jobs for new LG employees and subcontractors while securing an additional 70GWh in just the U.S. alone, and will be in addition to current and past investments, bringing the company’s annual production capacity in the US to more than 110GWh. LG’s first 5GWh US battery production plant opened in Michigan in 2012, and through a joint venture (JV) agreement with carmaker GM, it is now building a 35GWh plant in Ohio, worth around US$2.3 billion and expected to open in 2022. Moreover, in addition to the Ohio plant, LG Energy Solution and GM are currently discussing plans to build a second joint venture plant in the U.S., which will even further increase its cell production capacity. Although vast majority of battery and related systems are coming from factories in Asia, but Europe has already stepped up its efforts to establish domestic production while the US has lagged. So this announcement by LG, subsequent to the recent Executive Order by Biden will be a step forward in strengthening U.S’s local battery manufacturing and supply chain. Link to the news: https://www.energy-storage.news/news/lg-targets-more-than-110gwh-of-total-battery-production-capacity-in-us