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LG to invest $4.5 billion over four years for its battery business in the U.S.

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LG Energy Solution has announced that the company will be investing more than $4.5 billion by the end of 2025 into its own U.S. business to further expand the production capacity of batteries.

Further, the company says that this new investment will create more than 10,000 jobs for LG employees and subcontractors and will also secure an additional 70GWh in just the United States alone, in addition to the current and past investments.

Additionally, 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 and is set to manufacture the next-generation EV cells based on advanced technology.

The company had 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 the year 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.

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. 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.

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