LGES to Construct $5.5 bn Battery Plant in Arizona
- The objective of LGES is to step up EV and also ESS battery production in The United States and Canada.
- The complicated will certainly have two different production facilities: cylindrical batteries for EVs as well as lithium iron phosphate (LFP) pouch-type batteries for energy storage systems.
LG Energy Solution (LGES) will invest regarding $ 5.5 billion to build a battery production facility in Queen Creek, Arizona. The facility will certainly include two manufacturing facilities-- one for cylindrical batteries for electrical vehicles (EV) and also an additional for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).
LGES stated that this marks the largest single investment ever for a standalone battery manufacturing facility in The United States and Canada. The LGES facility will certainly be additionally more than 4 times the amount the company originally introduced last year to manufacture cylindrical EV batteries in the very same area.
Out of the $5.5 billion, LGES strategies to invest $3.2 billion in structure cylindrical battery manufacturing facility with a capacity of 27GWh. This will certainly be operationalised by 2025.
LGES will also spend $2.3 billion in LFP pouch-type battery facility with the capacity of 16GWh as well as this will start production in 2026. LGES mentioned in its official statement that both facilities, completing 43GWh, strategy to begin this year.
With the new battery production complicated in the southwestern state, LGES will certainly improve its manufacturing capacity in significant product sections, create more natural collaborations with its consumers in both EV as well as ESS fields, and reduced on the logistics set you back by bringing its new manufacturing facilities close to its customers.
The cylindrical battery facility intends to begin mass production of 2170 cells mostly for the EV makers in The United States and Canada. LGES said that it is the first-ever united state cylindrical battery production facility solely invested by a Korean battery supplier. The company's choice to enhance investment in cylindrical EV battery manufacturing in North America comes from rising need from EV makers for in your area made top quality, high-performance batteries in an initiative to please the Inflation Reduction Act (IRA)'s EV tax credits.
"Our choice to invest in Arizona shows our strategic effort to continue broadening our worldwide manufacturing network, which is currently the biggest in the world, to further advancement our ingenious and top-quality items in scale and with speed," said Youngsoo Kwon, CEO of LGES.
In 2014, LGES revealed its strategy to invest $1.48 billion in a joint venture with Stellantis NV in Windsor, Canada, to generate 40 GWh of batteries.