LG Energy Solution plans to invest more than five trillion won in building up production facilities in the United States. It seems intent on strengthening its leading position in the U.S. market and getting the upper hand in the ongoing court battle with SK Innovation.
The South Korean energy business announced on Friday that more than 5 trillion won will be invested by 2025 in increasing its battery production capability by 70GWh in the United States. Given its Michigan factory's capacity of 5GWh, LG Energy Solution will be capable of producing over 75GWh in the United States alone. The company’s factory networks fabricate not only flagship battery products for EVs and energy storage systems (ESS) but also cylindrical batteries, demands for which are increasing among EV startups such as Lordstown Motors and Proterra. LG Energy Solution is expected to create more than 10,000 new jobs at facilities and construction project.
LG Energy Solution intends to select more than two site candidates within the first half of this year. New factories will run 100% on renewable energy. One of the items on its agenda during the first half is how much it will invest in the second manufacturing facility of Ultium Cells, a joint venture created in collaboration with General Motors, and the plant site.
Under the new investment plan LG Energy Solution is expected to solidify its leadership in the U.S. EV and ESS markets, say market analysts. Some experts consider it a defensive action against SK Innovation, which is currently seeking to ask the U.S. government to veto the International Trade Commission's ruling for LG Energy Solution. Whereas SK Innovation argues that the shutdown of its battery pipeline will have negative impact on the U.S. economy, LG Energy Solution is trying to convince that it can respond to batter demands based on its large-scale investment.