LG Energy Solution to Invest over 4.5 Billion Dollars in Own U.S. Battery Business by 2025, Expanding Capacity by 70GWh SEOUL, South Korea, March 12, 2021 /PRNewswire/ -- LG Energy Solution today announced that by the end of 2025, the company will invest more than $4.5 billion (KRW 5 trillion) in the company's own U.S. business to further expand its battery production capacity. 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. In addition to the Green Field Project, 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. This second JV plant is expected to have a production capacity scale similar to the two companies' first plant, and is set to manufacture next generation EV cells based on advanced technology. LG Energy Solution developed these 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 (EV) market. The Green Field Project will provide the U.S. with a large-scale supply of environmentally friendly batteries to increase renewable energy sources across an array of industries, including electric vehicles. "The goals of the U.S. president and automakers will be a propelling factor in the growth of the country's electric vehicle and energy storage systems markets," stated Jong Hyun Kim, CEO of LG Energy Solution. "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. Through these commitments, the company aims to secure its leadership position as a strong, essential partner in the EV and ESS market and contribute to the success of the U.S. auto industry and economy." LG Energy Solution established its first U.S. research facility in 2000 and invested 600 million dollars to secure a production capacity of 5GWh at its first Michigan plant built in 2012. In 2019, the company entered into a joint venture with General Motors (GM) to construct a 2.3 billion dollar battery plant in Ohio, which is slated for completion in 2022 to create an annual capacity of 35GWh. The latest Green Field Project will give the company a total production capacity of over 110GWh in the U.S. In terms of direct employment of new LG employees, the company will spike its current job count to 4,000 new jobs through these new commitments. This is in addition to the 1,400 jobs in Michigan and 1,100 jobs through its GM joint venture plant in Ohio. This is a total of 6,500 direct LG jobs in the U.S. The company intends to use regional subcontractors in tandem with the additional production capacity expansion to strengthen the local economies at the new facility. This action is expected to generate more than 6,000 additional new jobs through subcontractors alone. Within the first half of 2021, LG Energy Solution will select at least two location candidates for its factory intended to manufacture various types of batteries in the U.S. This will be followed by a meticulous board review before making final decisions. The new LG Energy Solution facility will produce pouch cell batteries to be used in EVs and energy storage systems (ESS), as well as cylindrical cell EV batteries that are currently rapidly increasing in demand. LG Energy Solution stands as the first and only battery company to hold the experience and technology to mass produce these products. All new LG Energy Solution plants in the U.S. will operate using 100 percent renewable energy, reinforcing the company's dedication to its Green Field Project. In the second half of last year, the Michigan battery plant began running entirely on renewable energy. As the pressure for domestic production for EV components is heavily increasing in the U.S., LG Energy Solution is eager to expand its production capacity so that it can meet the needs of numerous global automakers across U.S. and Europe. In addition to partnering with large global companies, LG Energy Solution is also currently receiving battery supply orders from various ESS and EV startups in the U.S. Through these investment plans, LG Energy Solution aims to alleviate the industry concerns around battery supply sufficiency and accelerate the process of expanding its position in the U.S. so that its large scale project plans can be implemented as soon as possible. LG Energy Solution will also build solid and stable U.S-based supply chains that provide an extensive range from research to product development and production, as well as the procurement of raw components.
By PR Newswire