Tesla Supplier LG Energy To Dole Out $5.5B On US EV Battery Plants

LG Energy Solution Ltd proposes to invest 7.2 trillion won ($5.5 billion) in building a manufacturing complex in Queen Creek, Arizona, to tap the rising demand for EVs backed by the U.S. Inflation Reduction Act's push for domestic production.
The complex will consist of two manufacturing facilities, one for cylindrical batteries for electric vehicles (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).
It marks the most significant single investment ever for a stand-alone battery manufacturing facility in North America.
Also Read: Tesla Braces For Third International EV Factory To Tap Indonesia's Battery Reserve
It is also more than four times the amount the company initially announced last year (KRW 1.7 trillion) to manufacture cylindrical EV batteries in the exact location.
The Tesla, Inc TSLA supplier looks to dole out KRW 4.2 trillion ($3.2 billion) in building a cylindrical battery manufacturing facility with a capacity of 27GWh, and KRW 3 trillion ($2.3 billion) in LFP pouch-type battery facility with the power of 16GWh. Both facilities, totaling 43 GWh, plan to break ground this year.
The new cylindrical battery manufacturing facility aims to start mass production of 2170 cells in 2025, mainly for EV makers in North America.
The new manufacturing facility for LFP pouch-type batteries for ESS aims to start production in 2026.
LG's IRA-compliant plant's customers will include automakers and startups based in North America, Bloomberg reports.
LG eyes seven plants in North America in total, including three plants with General Motors Co GM in the U.S., one with Honda Motor Company, Ltd (NYSE: HMC) in Ohio, and another in Canada with Stellantis N.V. STLA
LG is also in talks with Toyota Motor Corp TM for a potential partnership.
Price Action: TSLA shares traded lower by 0.67% at $190.93 in premarket on the last check Friday.