-The most important single funding ever for a stand-alone battery manufacturing facility in North America -The brand new manufacturing complicated to provide cylindrical batteries for EVs (27GWh) and LFP pouch-type batteries for ESS (16GWh), with a complete annual manufacturing capability of as much as 43GWh
LG Power Resolution (LGES; KRX: 373220) at this time introduced that it’ll make investments roughly KRW 7.2 trillion (USD 5.5 billion) to construct a battery manufacturing complicated in Queen Creek, Arizona. The complicated will include two manufacturing services – one for cylindrical batteries for electrical autos (EV) and one other for lithium iron phosphate (LFP) pouch-type batteries for vitality storage methods (ESS).
This marks the biggest single funding ever for a stand-alone battery manufacturing facility in North America. That is additionally greater than 4 occasions the quantity the corporate first introduced final 12 months (KRW 1.7 trillion) to provide cylindrical EV batteries on the similar location.
Out of KRW 7.2 trillion, the corporate plans to speculate KRW 4.2 trillion (USD 3.2 billion) within the building of a cylindrical battery manufacturing facility with a capability of 27GWh, and KRW 3 trillion (USD 2.3 billion) in LFP pouch-type battery facility with a capability of 16GWh. The 2 services, with a complete of 43GWh, plan to interrupt floor this 12 months.
With the brand new battery manufacturing complicated within the southwestern state, LGES will increase its manufacturing capability in main product segments, develop extra cohesive partnerships with its clients within the EV and ESS sectors, and scale back logistics prices by bringing its new manufacturing services nearer to its clients.
The brand new cylindrical battery manufacturing facility goals to start out mass manufacturing of 2170 cells by 2025, main EV makers in North America. That is the primary US cylinder battery manufacturing facility invested solely by a Korean battery producer. The corporate’s determination to extend funding in cylindrical EV battery manufacturing in North America stems from elevated demand from EV makers for domestically produced high-quality, high-performance batteries in an effort to fulfill the EV tax credit within the Inflation Discount Act (IRA).
The brand new manufacturing facility for LFP pouch-type batteries for ESS, which is the primary ESS-exclusive battery manufacturing facility on the earth, goals to start out manufacturing in 2026. With LG Power Resolution Vertech, Inc.’s totally built-in vitality storage options, LGES will additional increase its presence all through the ESS worth chain.
Positioning the brand new ESS battery facility in North America, the biggest ESS market worldwide, LGES goals to fulfill the quickly rising wants for domestically manufactured batteries on the again of the IRA, and can additional facilitate North America’s clear vitality transition with sturdy authorities. insurance policies that assist ESS adoption.
“Our determination to put money into Arizona displays our strategic initiative to proceed increasing our international manufacturing community, which is already the biggest on the earth, to advertise our progressive and high-quality merchandise at scale. and simple,” mentioned Youngsoo Kwon, CEO of LG Power Resolution. “We consider that is the suitable transfer on the proper time to empower the clear vitality transition within the US”
The corporate’s new manufacturing facility will use a state-of-the-art manufacturing facility system that does all of the decision-making on machine-generated knowledge. By implementing this key step to enhance product high quality, the Arizona services will goal to extend yields, enhance manufacturing processes, and enhance productiveness to higher meet the rising battery demand within the area.
About LG Power Resolution
LG Power Resolution (KRX: 373220), a split-off from LG Chem, is a number one international producer of lithium-ion batteries for electrical autos, mobility, IT, and methods to save lots of vitality. With 30 years of expertise in revolutionary battery expertise and in depth analysis and improvement (R&D), the corporate is the main battery-related patent holder on the earth with over 25,000 patents. Its sturdy international community, protecting North America, Europe, Asia, and Australia, consists of battery manufacturing services constructed by way of joint ventures with main automakers resembling Normal Motors, Stellantis NV, Hyundai Motor Group, and Honda Motor Co., Ltd. prioritizing inexperienced enterprise and sustainability, LG Power Resolution goals to attain carbon impartial operations by 2050, whereas embodying the worth of shared development and selling a various and inclusive company tradition. To be taught extra about LG Power Resolution’s concepts and improvements, go to https://information.lgensol.com.