LG Energy Solution announced this Friday it has plans to heavily invest in the U.S. to expand its battery production capacity by further 70 gigawatts hour. Such expansion will give the company a total capacity of more than 110 GWh in the U.S.
Firstly, the investment figure is $4,5 billion or more, for the next four years. The Korean company intends to build a new battery facility called Green Field Project; but also, is at plans with automaker GM to build a second joint venture plant in the U.S.
Secondly, LG Energy had already invested heavily in the U.S. Back in 2012, it invested $600 million to build a 5 GWh capacity plant in Michigan.
Then, two years ago it formed a joint venture with GM to build a $2,3 billion battery plant in Ohio. This plant will be operational by 2022, and will have an annual production capacity of 35 GWh.
Although the latest proposed plant’s location was not disclosed, LG Energy said it will select two candidate locations later on this year, before it makes its final pick.
On the other hand, the new plant will produce both cell batteries for electric vehicles and energy storage systems. Also, it will produce cylindrical cell EV batteries. As for job creation, LG Energy Solutions expects to create more than 10,000 jobs for LG as well as subcontractors.
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Moreover, LG developed all these expansion plans over the last year, “to rapidly mobilize its Green Field Project in a full-fledged effort to ensure its position in the growing U.S. electric vehicle market.” The statement reads.
Indeed, the Green Field Project will provide the U.S. with a large-scale supply of environmentally friendly batteries, in order to increase its renewable energy sources.
In addition, Jong Hyun Kim, CEO of LG Energy Solution, said. “The goals of the U.S. president and automakers will be a propelling factor in the growth of the country’s electric vehicle; also, of the energy storage systems markets.”
He also added. “LG Energy Solution is dedicated to expanding its battery production capacity and structuring a stable, localized supply chain that provides everything from R&D to production.”
Finally, all of the LG Energy Solution plants in the U.S. will operate a 100% with renewable energy; therefore, the company will reinforce its dedication to the Green Field Project and climate change efforts. In fact, the Michigan plant began operating entirely by renewables during 2020’s second half.