LG Energy Solution, GM to build $2.1 billion battery factory in U.S. – EQ Mag Pro
SEOUL : South Korea’s LG Energy Solution (LGES) plans to spend $2.1 billion with General Motors (GM.N) to build an electric vehicle (EV) battery factory in the United States. United parent company LG Chem (051910.KS) said on Tuesday.
LGES and GM are expected to fund the project equally through Ultium Cells, their U.S.-based battery joint venture, for what will be their third joint U.S. battery plant, according to LG Chem regulatory filings.
LGES declined to provide details on the new plant’s location or production capacity.
In December, Reuters reported that GM had offered to build a $2.5 billion battery plant near Lansing, Michigan, with LGES. Read more
LGES controls more than 20% of the global electric vehicle battery market and supplies Tesla Inc (TSLA.O), Volkswagen AG (VOWG_p.DE) and Hyundai Motor Co (005380.KS), among others.
It is already building two plants with GM in Ohio and Tennessee to manufacture 70 GWh of batteries, which could power around 1 million electric vehicles by 2024.
LGES has production sites in the United States, China, South Korea, Poland and Indonesia.
His announcement came ahead of the company’s market debut later this week following the launch of South Korea’s biggest-ever IPO.
The IPO attracted $12.8 trillion in offerings from institutional investors and $96 billion from retail investors.
The IPO price values LGES at around 70.2 trillion won ($58.57 billion) and will make it the third most valuable company in South Korea after Samsung Electronics Co (005930.KS) and SK Hynix Inc. (000660.KS).
($1 = 1,198.5800 won)