LG Energy Solution to Invest US$3.1 Billion in Expanding Battery Capacity in South Korea – EQ Mag
The demand for batteries is bound to surge under the continuously robust development of EVs in the future. South Korean battery company LG Energy Solution (LGES) announced to invest KRW 4 trillion (approx. US$3.1 billion) between 2022 and 2026 in expanding its production of EV cylindrical batteries in the country.
LGES states that new investment will be used for the expansion and establishment of new capacity in Ochang, where new production lines will also adopt smart factory solutions such as automation and intelligence production. The company is expected to add 1,800 employees, and the local government has also commented on providing financial and administrative support.
With countries launching their respective plans for net-zero emission, EVs will occupy an increasing level of market shares in the future that will also trigger an increment in battery demand. LGES will also join hands with Honda in establishing an EV battery plant in Ohio, and is expected to form a joint venture of automotive li-ion batteries with an estimated investment of US$3.5 billion and 2,200 job opportunities. Final total investment is expected to be US$4.4 billion.
Parent company LG Chem commented last month to be investing US$3.2 billion in an anode factory for automotive batteries in Tennessee.
LGES is the second largest battery supplier in the world, and accomplished a YoY growth of 14.1% in EV battery sales between January and September this year at 48.1GWh, though the company had dropped 7.5 percentage points in YoY regarding market share, which is why the South Korean government has also announced to be working with LGES, SK On, and SDI on ramping the country’s global market share in rechargeable battery to 40% by the end of 2030.