South Korea's LG Energy Solutions plans to invest over $4.5 billion in its US business by 2025 to expand its battery production capacity and secure an additional 70 GWh/year in the US alone as part of its Green Field project.
The company said March 11 that the latest Green Field project would give it a total production capacity of over 110 GWh/year in the US.
The Green Fields project aims to establish the company's position in the growing US electric vehicle (EV) market and looks to provide the country with a large-scale supply of environmentally friendly batteries to increase renewable energy sources for the EV and energy storage systems (ESS) sectors.
LG Energy Solution established its first US research facility in 2000 and invested $600 million in its first 5 GWh/year plant built in Michigan in 2012.
The company also said it was in discussions with automaker General Motors to build a second joint venture plant in the US, which would increase its cell production capacity even further.
GM and LG entered into a JV in 2019 to build a $2.3 billion 35 GWh/year battery plant in Ohio, which is due for completion in 2022.
The second plant would likely have a production capacity similar to the first plant and would manufacture next generation EV cells using advanced technology.
LG said the JV hoped to select at least two location candidates for the second factory in H1 2021, which would be followed by a meticulous board review before making final decisions.
It added that the new facility would produce pouch cell batteries to be used in EVs and ESS, as well as cylindrical cell EV batteries that were becoming increasingly in demand.
"All new LG Energy Solution plants in the US will operate using 100% renewable energy, reinforcing the company's dedication to its Green Field project. In the second half of last year, the Michigan battery plant began running entirely on renewable energy," the company said.
LG added that the it would also be building "solid and stable US-based supply chains that provide an extensive range from research to product development and production, as well as the procurement of raw components."
LG Energy Solution CEO Jong Hyun Kim said the goals of the US president and automakers would be "a propelling factor in the growth of the country's electric vehicle and energy storage systems markets," and LG was dedicated to expanding its battery production capacity and structuring a stable, localized supply chain that provided everything from research and development to production.
"Through these commitments, the company aims to secure its leadership position as a strong, essential partner in the EV and ESS market and contribute to the success of the US auto industry and economy," he said.
