Despite growing uncertainties over the global economy, battery manufacturers have continued to make investments to meet the needs of electric vehicles.
LG Energy Solution announced on Friday that it will double factory lines exclusive to batteries in Ford models in its manufacturing facilities in Poland by next year. Since the second half of 2020, South Korea's leading electric vehicle battery maker has supplied batteries to the popular EV model Mustang Mach-E and the commercial EV E-Transit. There is some level of optimism about its future sales trends. Ford CEO Jim Farley wrote on Twitter late last year that the company will more than triple production capacity of the Mustang Mach-E by 2023. The Mustang Mach-E sold more than 55,000 units last year in the global market.
The Poland-based Ford manufacturing lines are the largest-scale battery production hub as of now in the world with a manufacturing capacity of 70 GWh. LG Energy Solution in these facilities provides batteries not only to Ford but also to German carmaker Volkswagen. The recent build up plan is aimed at Ford’s production increase plan.
“LG has recently resumed a review of an investment project of 1.7 trillion won in battery production lines in Arizona. It may take a preemptive measure to get ready for potential demands,” said an insider from LG’s side. “If a trustful client or a joint venture promises a certain level of volume, the business can be partly free of risks of economic recession.”
SK on also announced on Friday that it will make a joint investment in building facilities for cathode materials in North America in collaboration with Ford and cathode manufacturer ECOPRO BM. The trilateral group will forge an official contract to make investments within this year and commence construction works on the site around the second half of the next year. Once cathode materials are produced, they will be supplied to Blue Oval SK, or a joint venture recently launched by SK on, and Ford to manufacture batteries.
Do-Young Kwak firstname.lastname@example.org