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March 12, 2021updated 28 Jul 2022 7:06am

LG Energy Solution to invest $4.5bn in US battery production expansion

LG Energy Solution has announced plans to invest more than $4.5bn (KRW5tn) by the end of 2025 to expand its battery production in the US.

By Umesh Ellichipuram

LG Energy Solution has announced plans to invest more than $4.5bn (KRW5tn) by the end of 2025 to expand its battery production in the US.

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The company has started discussions with General Motors to build a joint venture cell production plant in the US. The proposed plant will produce electric vehicle cells using advanced technology. These include pouch cell batteries for use in electric vehicles and energy storage systems, as well as cylindrical cell electric vehicle batteries.

LG currently operates the Green Field Project. It set the project up over the last year in order to get a foothold in the battery and electric vehicle market. When completed, the project will give the company a total production capacity of over 110GWh in the US.

The investment will create more than 10,000 jobs for LG and subcontractors, while securing an additional 70GWh production capacity in the US.

LG Energy Solution CEO Jong Hyun Kim said: “The goals of the US president and automakers will be a propelling factor in the growth of the country’s electric vehicle and energy storage systems markets.

“LG Energy Solution is dedicated to expanding its battery production capacity and structuring a stable, localised supply chain that provides everything from research and development to production.”

In 2019, LG Energy Solution entered into a joint venture with GM to construct a $2.3bn battery plant in Ohio, with an annual use capacity of 35GWh. This plant will finish construction in 2022.

In a statement, an LG Energy Solution spokesperson said: “All new LG Energy Solution plants in the US will operate using 100% 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.”

The company will select at least two location candidates within the first half of this year for its factory to manufacture different battery types in the US.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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