SEOUL, March 24 (Yonhap) — South Korean battery maker LG Energy Solution Ltd. (LGES) on Thursday announced its plan to spend 1.7 trillion won ($1.39 billion) to build its second electric vehicle (EV) battery manufacturing plant in the US state of Arizona as as it seeks to expand its presence in the global market.
—
LGES also unveiled a plan to establish a joint EV battery production plant with multinational automaker Stellantis NV in the province of Ontario, Canada, under a deal worth 4.8 trillion won. , about five months after the two companies announced the formation of a joint venture in North America.
—
The new production center to be located in Queen Creek, Arizona, will be the first cylindrical battery factory operated by a South Korean battery manufacturer and will have an annual production capacity of 11 gigawatt hours (GWh), LGES said. in a press release. The company plans to begin operations in the second half of 2024.
—
Current factories mainly produce pocket cells used in consumer and automotive products.
—
“EV start-ups that have adopted cylindrical batteries are doing well, and demand for cordless power tools is growing rapidly. We plan to actively respond to the rapidly growing cylindrical battery market in North America,” LGES noted.
—
The new joint plant with Stellantis will produce battery cells and modules with an annual capacity of 45 GWh by 2026. Output from the plant in Windsor, Ontario will be supplied to the assembly plants of Stellantis which manufactures SUVs from well-known brands like Chrysler and Jeep.
—
LGES will also apply its latest smart technologies in both factories such as remote support and automation systems to maximize productivity, the company added.
—
The two new plants in the United States and Canada are expected to boost the overall production capacity of LGES, the world’s second largest battery manufacturer, to more than 200 GWh in the North American market after 2025.
—
LGES operates its own factory in Michigan and is building three additional battery factories in Ohio, Tennessee and Michigan through its joint venture with General Motors Co.
—