South Korea’s LG Power Answer, which provides electrical car batteries to Tesla, Lucid Motors, Normal Motors and Proterra, mentioned 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 Power is growing its presence in the USA. In January, the corporate mentioned it plans to spend $2.1 billion with General Motors to construct a 3rd joint EV battery plant within the U.S. Final 12 months, Stellantis additionally reached a take care of LG to supply battery cells and modules in North America.
LG’s Arizona funding comes at a time when the demand for cylindrical cells and purposes that use cylindrical batteries, reminiscent of electrical instruments that want on the spot energy or mobility units like EVs or e-bikes, is on the rise within the North American market. That’s as a result of all these batteries are comparatively smaller however have excessive vitality density, in response to a LG spokesperson.
The 11-gigawatt hours capability website development is about to start within the second quarter of 2022, with mass manufacturing beginning in 2024, in response to the corporate.
LG Power says the manufacturing facility would be the first cylindrical-type batteries manufacturing plant in North America to be provided to EV producers. In line with a report by Reuters, EV makers like Tesla, Lucid and Proterra might be its potential clients. LG says it has contracts within the works, however declined to share which corporations it will provide to by way of its Arizona manufacturing facility.
LG Power says it’s contemplating looking for further U.S. manufacturing capability. In January, LG Power raised greater than $10 billion by way of its preliminary public providing.
Japan’s 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 be planning on constructing a battery plant within the U.S., with the intention of beginning manufacturing in 2025.
The inflow of international battery corporations creating batteries within 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 organising such provide chains.
