LG Energy Solution Ltd (LGES) said it would stick around, investing 7.2 billion won ($5.56 billion) to build its second stand-alone battery plant in the United States. LGES will spend 4.2 billion won to build a circular battery plant in Queen Creek, Arizona, with a target capacity of 27 hours per year, equivalent to 350,000 all-electric vehicles the company said in some cases is equal
LGES will invest 4.2 billion won to build a circular battery plant in Queen Creek, Arizona, with an annual capacity of 27 hours of batteries, or enough energy to power 350,000 all-electric vehicles, according to a company press release the
In Michigan, LGES is an independent battery plant. It will cost 3 billion won to build a separate plant on the same property to produce lithium iron phosphate (LFP) batteries for an energy storage system (ESS), which could be produced annually, according to Yonhap news agency no It is 16 GW-hours
Investments in Arizona have soared since the original plan of 1.7 trillion won was unveiled in March last year, according to a decision at an earlier board meeting. The idea for the LFP factory had not been part of the initial investment.
A few months later, LGES, the second-largest battery manufacturer in the world after China’s CATL, withdrew the proposal, claiming a rise in costs due to escalating global inflation.
But, LGES stated it was thinking about getting the strategy back on track in the most recent earnings conference in January of this year.
In order to be eligible for new U.S. government subsidies for EV and EV battery companies investing in the U.S. under the new Inflation Reduction Act, it has been suggested that the projected Arizona plant will be developed to supply Tesla for its automobiles in the U.S. market (IRA).
Tesla in China receives its batteries from LGES. In order to begin operations by 2025, the new cylindrical battery plant will break ground this year. According to LGES, it will manufacture and supply the common 2170 cylindrical cells.The pouch type cells will be produced at the LFP battery plant. In 2026, the commercial operation is anticipated to start.
