LG Energy Solution increases the production of batteries for electric vehicles
One of the largest producers of batteries, the Korean company LG Energy Solution, announced the allocation of 3.1 billion dollars to expand its facilities. According to official information, the business plans to invest in the construction of a plant to produce batteries for electric vehicles and other goods. The funds will be allocated in installments through 2026.
In addition to production facilities, the complex will house a research and development center and the necessary infrastructure. In total, the new facility can provide 1,800 jobs and will produce batteries of various types, including cylindrical and pack batteries. According to LG Energy Solution’s management, this investment will enable the company to significantly increase its production capacity, thus enabling it to respond more flexibly to the growing demand.
This capacity expansion project is not the only one LG is implementing. In 2022, the company signed a cooperation agreement with Japanese concern Honda. Under the agreement, the manufacturers plan to build a battery production facility. The plant will be located in the U.S., and the amount of investment in its construction is $4.4 billion. Construction of the facility is scheduled to begin in 2023. According to the plans of the partners, the enterprise should produce batteries with a total capacity of 40 GWh per year. This amount is enough to equip more than 700 thousand electric cars. Cooperation between automakers and battery companies is the best solution to meet the growing demand for electric vehicles and batteries.
In the summer of 2022, it also became known that LG Energy has allocated $568 million to expand facilities located in Korea. The investment will go into several facilities that produce different types of batteries. Additional production lines will be launched in the second half of 2023. By 2024, the Arizona plant, which makes products for Tesla and Lucid, will also be upgraded.
According to official statistics, LG Energy has a global market share of about 20% in the electric car battery market. The company also cooperates with car companies such as General Motors, Hyundai, and others.
The demand for batteries is growing steadily, which has a positive effect on the development of LG’s business. In January 2022, the company was able to raise almost $11 billion after floating its shares on the stock exchange in Korea. The proceeds were a record for the local market. Analysts predict that LG’s market share may increase in the next few years. In addition, Korean battery makers are well-positioned to cover more than 50% of the needs of the global electric vehicle battery sector by 2025.
