LG Energy Solution (formerly LG Chem) plans to invest more than $4.5 billion over the next four years on battery production capacity in the United States. This new investment will allow for 10,000 more American jobs and 70 GWh of additional battery production capacity. The batteries will mostly be supplied to the electric vehicle industry and some energy storage system providers.
In addition, LG Energy Solution and GM are currently discussing plans to build a second joint venture plant in the United States, 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 in Ohio, and is set to manufacture next generation EV cells based on advanced technology.
“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 to secure a production capacity of 5 GWh at its first Michigan plant built in 2012. In 2019, the company entered into a joint venture with GM to construct a $2.3 billion battery plant in Ohio, which is slated for completion in 2022 to create an annual capacity of 35 GWh. The latest Green Field Project will give the company a total production capacity of over 110 GWh in the United States.
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 United States.
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. 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, 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 United States will operate using 100% renewable energy. In the second half of last year, the Michigan battery plant began running entirely on renewable energy.
News item from LG