Stellantis COO Mark Stewart (L) and LG Energy Solution’s head of advanced automotive battery division Kim Dong-myung pose for photos at the ceremony announcing their joint venture to build an EV battery plant in Ontario, Canada, on March 23, 2022, in this photo provided by LGES.
SEOUL, March 24 (Korea Bizwire) — South Korean battery maker LG Energy Solution Ltd. (LGES) said Thursday it is spending 1.7 trillion won (US$1.39 billion) to build its second standalone electric vehicle (EV) battery plant in the U.S. state of Arizona as it pushes for a further global market expansion.
LGES also unveiled a plan to set up a joint EV battery plant with multinational carmaker Stellantis N.V. in Ontario, Canada, in a deal worth 4.8 trillion won, about five months after the two companies announced their joint venture partnership in North America.
The new Arizona factory, to be located in Queen Creek, will be the first cylindrical battery plant run by a South Korean battery producer, with an annual production capacity of 11 gigawatt hours (GWh), LGES said in a press release.
It plans to start running in the second half of 2024.
The existing plants mainly produce pouch cells used for consumer and automotive applications.
“EV startups that have adopted cylindrical batteries are faring well, and the demand for cordless power tools is growing rapidly. We plan to actively respond to the fast-growing cylindrical battery market in North America,” LGES said.
The new joint factory with Stellantis will be capable of producing battery cells and modules with an annual capacity of 45 GWh by 2026.
The output from the Ontario plant will be supplied to Stellantis assembly plants that manufacture its famous brands, such as Chrysler and Jeep SUVs.
LGES will also bring in the latest smart technologies to the two plants, such as remote support and automation systems so as to maximize the productivity, the company added.
The two new plants in the U.S. and Canada are expected to boost the overall production capacity of LGES, the world’s second-largest battery maker, to more than 200 GWh in the North American market after 2025.
That amounts to producing 2.5 million high-performance all electric vehicles that can travel more than 500 kilometers on a single charge.
LGES operates its own factory in Michigan and is building three other battery plants in Ohio, Tennessee and Michigan in a joint venture with General Motors Co.
(Yonhap)
