South Koreas LG Energy Solution, which provides electrical car batteries to Tesla, Lucid Motors, General Motors and Proterra, stated on Thursday it’s investing $1.4 billion (1.7 trillion KRW) to construct a cylindrical battery plant in Queen Creek, Arizona.
The transfer is a transparent indication that LG Energy is rising its presence in the United States. In January, the firm stated it plans to spend $2.1 billion with General Motors to construct a 3rd joint EV battery plant in the U.S. Last 12 months, Stellantis additionally reached a deal with LG to provide battery cells and modules in North America.
LG’s Arizona investment comes at a time when the demand for cylindrical cells and functions that use cylindrical batteries, corresponding to electrical instruments that want immediate energy or mobility units like EVs or e-bikes, is on the rise in the North American market. That’s as a result of a majority of these batteries are comparatively smaller however have excessive vitality density, in response to a LG spokesperson.
The 11-gigawatt hours capability website building is ready to start in the second quarter of 2022, with mass production beginning in 2024, in response to the firm.
LG Energy says the manufacturing facility might be the first cylindrical-type batteries manufacturing plant in North America to be equipped to EV producers. According to a report by Reuters, EV makers like Tesla, Lucid and Proterra might be its potential clients. LG says it has contracts in the works, however declined to share which firms it might provide to by way of its Arizona manufacturing facility.
LG Energy says it’s contemplating looking for further U.S. production capability. In January, LG Energy raised greater than $10 billion by way of its preliminary public providing.
Japans Panasonic, which additionally provides battery merchandise to Tesla, is looking for websites to construct a manufacturing facility in both Oklahoma or Kansas, as reported by NHK in February. Toyota can also be planning on constructing a battery plant in the U.S., with the goal of beginning production in 2025.
The inflow of overseas battery firms growing batteries in the U.S. might be a product of President Joe Biden’s infrastructure invoice, which is placing apart billions in funding to develop a nationwide battery provide chain.
LG didn’t reply in time to verify whether or not it’s eligible for funding from the U.S. for establishing such provide chains.