- 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 (NASDAQ: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 (NYSE:GM) in the U.S., one with Honda Motor Company, Ltd (NYSE: HMC) in Ohio, and another in Canada with Stellantis N.V. (NYSE:STLA)
- LG is also in talks with Toyota Motor Corp (NYSE:TM) for a potential partnership.
- Price Action: TSLA shares traded lower by 0.67% at $190.93 in premarket on the last check Friday.
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