Tags: Global Economy

LG to Invest $4.5B for Battery Capacity Expansion in The US

LG and General Motors Co confirmed last week that they are looking at sites to build a plant. It would be similar in size to the $2.3 billion facilities in Lordstown, Ohio, currently under construction. 

The companies have also talked to public officials in Tennessee, with GM planning to decide in the first half of 2021.

The LG Chem Ltd of South Korea plans to invest $4.5 billion in the U.S. by 2025. Moreover, hire 10,000 workers to expand battery capacity.

In an email on Thursday, LG Energy Solution said it developed the plan over the last year. That was to meet the growing demand for electric vehicles in the U.S.

Besides, it is also looking at President Joe Biden’s climate agenda. The agenda’s objective is to increase consumer incentives for EVs and electrify the U.S. government’s fleet.

The U.S. president and automakers’ goals will be a propelling factor, said Jong Hyun Kim, LG Energy Solution, CEO. That is in the growth of the country’s electric vehicle and energy storage systems markets, he said in the statement.

They are looking at a $4.5 billion investment. This will allow LG to add 70 gigawatt-hours of production capacity in the U.S. through 2025. 

The company will pick two locations for plants. The plants will be for manufacturing pouch cells and cylindrical batteries for EVs and energy storage systems. After the expansion, LG’s total capacity in America will rise to 75 gigawatt-hours, it said.

General Motors

The 112-year-old Detroit automaker, General Motors, has vowed to make its entire global fleet largely electric by 2035. That includes changing its corporate logo to include the likeness of an electric plug. GM has promised to roll out 30 new battery-powered vehicles globally within five years.

That said, the company is likely to need far more battery capacity.

LMC Automotive, a consulting firm, predicts that U.S. battery-powered vehicle sales will exceed 1 million yearly starting in 2023. Furthermore, it will exceed 4 million by 2030.

Aside from laying out plans to tackle climate change, President Joe Biden’s administration is also prioritizing new supply chains. It now considers them a national security concern.

That means everything from computer chips to batteries. Most of these supplies are built in China and other countries. 

The Korean company LG Energy Solution said the investment would help create 10,000 jobs, including subcontractors. LG makes batteries for Chevy’s electric Bolt.

Read also: LimeFX review | Is it a good Forex broker?

User Review
0 (0 votes)


Leave a Reply


Share this on

Share on facebook
Share on twitter
Share on linkedin

Rec­om­mended for You

Subscribe to Our Newsletters

Have The Best Of Trade Market News Delivered Directly To Your
Mailbox. Subscribe To Receive The Latest Market News.