LG Energy Solution Builds US-Centered 'Global Pentagon Production System'..."Aggressive Investment in North America"

"Full-scale mass production in 2025... Total 442GWh"

The first plant of 'Ultium Cells,' an electric vehicle battery joint venture established by LG Electronics and General Motors (GM), under construction in Rose Town, Ohio, USA. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] LG Energy Solution has begun full-scale preparations to establish a five-pronged system and mass production capabilities in major global markets including the United States. By around 2025, it plans to have a production capacity of approximately 440 GWh in Korea, the United States, China, Europe (Poland), and Indonesia.

According to LG Energy Solution on the 30th, it officially announced on the 26th that it will build a third battery plant in the United States together with General Motors (GM), the number one automobile company in the U.S. The two companies held an investment announcement event on the 25th (local time) in Lansing, Michigan, USA, revealing plans to establish the third plant of the electric vehicle battery joint venture 'Ultium Cells.' The investment amount is $2.6 billion (approximately 3.11 trillion KRW). The plant is scheduled to be completed in the second half of 2024, with phase one mass production starting in early 2025, aiming to expand production capacity to 50 GWh per year. This capacity is enough to equip about 700,000 high-performance pure electric vehicles capable of driving over 500 km on a single charge.

Kwon Young-soo, Vice Chairman and CEO of LG Energy Solution, said, "The third joint plant of Ultium Cells, located in the heart of the U.S. automotive industry, will serve as a gateway to producing millions of electric vehicles in the future," adding, "Together with GM, with whom we have built a long-standing cooperative relationship, we will contribute to the transition to the electric vehicle era in the United States."

LG Energy Solution has established production lines in 'Korea, North America, China, Poland, and Indonesia.' (Source: LG Energy Solution)

The core of LG Energy Solution's 'five-pronged production system' is the North American market. According to global market research firm IHS, the North American electric vehicle (EV + PHEV) battery market is expected to grow at an average annual rate of 58% until 2025. It is projected to grow from 46 GWh last year to 143 GWh in 2023 and 286 GWh in 2025.

Ultium Cells is building Plant 1 in Lordstown, Ohio (with an investment of $2.3 billion and a capacity of over 35 GWh) and Plant 2 in Spring Hill, Tennessee (also $2.3 billion and over 35 GWh). Plant 1 will start mass production this year, and Plant 2 will begin next year. Including the third plant, the total investment is expected to reach $7.2 billion (approximately 8.61 trillion KRW), securing an annual production capacity of over 120 GWh.

Another joint venture, 'Stellantis,' is expected to have a production capacity of 40 GWh if it completes construction as planned in 2024. The production facilities located in Holland, Michigan, USA, are gradually increasing output with a goal of securing 40 GWh.

Outside North America, the plant in Wroclaw, Poland, aims for 100 GWh by 2025; Plants 1 and 2 in Nanjing, Jiangsu Province, China, target 110 GWh by 2025; the Karawang plant, a joint venture with Hyundai Motor Group in Indonesia, plans for 10 GWh in 2024; and the plant in Cheongju, Chungcheongbuk-do, Korea, plans to establish a 22 GWh mass production system by 2025.

According to LG Energy Solution, establishing a five-pronged production system spanning 'Korea-North America-China-Poland-Indonesia' will create the world's largest global production system. LG Energy Solution plans to have a total production capacity of 442 GWh across these five regions. Through this, it expects to optimize logistics costs, swiftly respond to local policies and market changes, supply parts to finished vehicle manufacturers just in time, and maximize localization and customer service with rapid technical support.

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