LG "Investing 5 Trillion Won in Battery in the US... Building 2 Factories + α within 5 Years"

▲LG Chem's Ochang electric vehicle battery production line

[Asia Economy Reporter Choi Dae-yeol] LG Energy Solution announced on the 12th that it will invest more than 5 trillion won by 2025 to build at least two additional factories in the United States. As competition intensifies over leadership in eco-friendly industries such as electric vehicles and energy storage systems (ESS), the company decided to take proactive measures.

According to the company, with this investment decision, the current battery production capacity of 5 GWh (Michigan factory) will increase to 75 GWh. The company plans to decide on two or more new sites by the first half of this year and also finalize the location of the second factory of Ultium Cells, a joint venture with General Motors (GM), within the first half of this year. Ultium Cells is currently building a 30 GWh factory in Ohio. The new factory is being considered at a similar scale, and the company expects to produce batteries applying next-generation advanced technologies.

The company will also diversify its products by entering the cylindrical battery sector, mainly used by electric vehicle manufacturer Tesla. The company explained, "Global automakers are considering local production to respond to the electric vehicle market in the U.S., and since securing battery production capacity ahead of others is necessary, we have been promoting a 'greenfield project' to secure sites and build factories ourselves since the second half of last year."

LG Energy Solution expects that building additional factories in the U.S. will create more than 10,000 new jobs, including about 4,000 direct hires and 6,000 during the construction period. The total direct employment, including existing factories (Michigan and Ohio), will reach 6,500. The company also plans to enter the market alongside partner companies.

Kim Jong-hyun, President of LG Energy Solution, said, "The U.S. Green New Deal policy will accelerate growth not only in the electric vehicle market but also in the ESS market. By securing battery production capacity in advance and establishing a localized and stable supply chain system from research and development (R&D) to production, we will contribute to the success of the Green New Deal policy as the best partner in the local market."

This content was produced with the assistance of AI translation services.