LG to invest $4.5 billion in U.S. battery production through 2025

WASHINGTON/SEOUL — LG Energy Solution stated Thursday it plans to invest greater than $4.5 billion in its U.S. battery production business through 2025 and add 4,000 jobs because it considers constructing a minimum of two new U.S. vegetation, a company government informed reporters.

The South Korean provider, a unit of LG Chem, stated the funding will end result in a further 70 gigawatt-hours of U.S. battery production capability. The company declined to say the place in the United States it’s contemplating a brand new battery manufacturing plant.

Denise Gray, president of LG Energy Solution’s Michigan unit, stated the funding, which might not directly create one other 6,000 jobs throughout development, was being made to reply to the rising electrical car market.

“We are eager to expand our production capacity so that it can meet the needs of the numerous global automakers across the U.S. and Europe,” Gray stated.

LG can be in superior talks with General Motors to build a greater than $2 billion second joint venture cell manufacturing plant in Tennessee that may very well be introduced later this month. The first LG-GM JV plant is nearing completion in Lordstown, Ohio. Both firms have confirmed they’re in discussions for a brand new plant.

LG Chem has been in a battle with crosstown rival SK Innovation Co. after it alleged that SK stole commerce secrets and techniques. The U.S. International Trade Commission sided with LG Chem in February, however SK Innovation has lobbied the White House to overturn the choice, warning it could drive it to halt development of a brand new manufacturing unit in Georgia.

LG executives stated Thursday’s announcement had nothing to do with the ITC overview.

“This is more about (having a) very proactive and preemptive investment plan prior to confirmation of demand from our customers,” LG Energy Solution Senior Vice President Chang Seung-se stated.

“By including this capability earlier… we will shortly reply to market demand and prospects’ orders,” he informed reporters.

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