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LG Energy Solution Ltd.'s battery manufacturing plant in Michigan, the United States, is shown in this photo provided by the company on Jan. 27, 2021. (Yonhap) |
LG Energy Solution Ltd. said Friday it will invest 5 trillion won ($4.5 billion) by 2025 to expand its battery production capacity in the United States to meet growing demand in the key market.
The battery subsidiary wholly owned by LG Chem Ltd. said the investment will increase its US manufacturing capacity to 75 gigawatt hours (GWh) and help create 10,000 jobs, including 6,000 subcontractors.
LG Energy Solution operates a lithium-ion battery factory in Michigan and is building a new factory in Ohio through its joint venture with US automaker General Motors, which will be completed in 2022.
The South Korean company said its joint venture with GM will decide a site for a second factory that would be similar in size with the first factory in the first half of the year.
LG Energy Solution also has four battery plants -- one each in South Korea and Poland, and two in China.
LG Energy Solution said production capacity around the world came to 120 gigawatt hours as of the end of January, which is enough to supply batteries for 2 million electric cars.
LG Energy Solution, which provides batteries to Tesla and a number of global automakers, said the investment is aimed at catering to growing demand and contributing to the Joe Biden administration's Green New Deal initiative.
"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," CEO Kim Jong-hyun said in a statement. "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."
GM said it will roll out 30 EV models on the market by 2025 as the US automaker moves toward a full-electric lineup. (Yonhap)
