LG Energy Solution to invest $4.5bln in U.S. battery production (updated)
11/03/2021 16:41
(Recasts and updates throughout, adds detail)
By David Shepardson and Heekyong Yang
WASHINGTON/SEOUL, March 12 (Reuters) - South Korea's LG
Energy Solution plans to invest more than $4.5 billion in its
U.S. battery production business over the next four years,
including plans to build at least two new plants, a senior
executive said on Thursday.
Denise Gray, president of LG Energy Solution's Michigan
unit, said the company's investment will result in an additional
70GWh of U.S. battery production capacity to respond to growth
in the electric vehicle market.
"We are eager to expand our production capacity so that it
can meet the needs of the numerous global automakers across the
U.S. and Europe," Gray said. "We are looking at least two new
factories in the United States."
Gray said the planned investment would create 4,000 new U.S.
jobs, more than doubling the current combined workforce of the
LG Chem 051910.KS unit and its joint venture with General
Motors GM.N in the country.
The company plans to select plant locations in the first
half of the year, Gray said, adding their construction would
create around 6,000 indirect jobs.
LG is already nearing completion of a cell manufacturing
plant in Ohio with GM and the pair are in advanced talks to
build a second facility in Tennessee. LG said on Friday the
second plant would have a similar production capacity of around
35GWh. urn:newsml:reuters.com:*:nL3N2L22R0
LG has been embroiled in a high-profile dispute with rival
South Korean firm SK Innovation 096770.KS in the United States
after LG alleged that SK stole trade secrets.
The U.S. International Trade Commission last month issued a
10-year order prohibiting most U.S. imports of SK lithium-ion
batteries. SK has lobbied the White House to overturn the ban,
which could also be negated by SK and LG reaching an independent
settlement. urn:newsml:reuters.com:*:nL1N2KG37H urn:newsml:reuters.com:*:nL4N2L900S
LG Energy Solution Senior Vice President Chang Seung-se said
the company's latest U.S. plans were unrelated and "more about
(having a) very proactive and preemptive investment plan prior
to confirmation of demand from our customers."
(Reporting by David Shepardson in Washington and Heekyong Yang
in Seoul, additional reporting by Joyce Lee in Seoul; editing by
Sonya Hepinstall and Jane Wardell)
((David.Shepardson@thomsonreuters.com; 2028988324;))