LG will spend $5.5 billion on a battery manufacturing unit, greatest funding of its type in North America

LG Power Answer lately introduced a $5.5 billion funding in a battery manufacturing advanced in Arizona. That is by far the biggest single funding in North America for a standalone battery facility.

LG selected Queen Creek, Arizona, for the long run battery facility, nevertheless it is not going to solely produce EV batteries. The corporate is dividing its funding between electrical automobile batteries, which will probably be manufactured starting in 2025, and power storage methods, which will probably be produced starting subsequent yr.

The devoted EV battery manufacturing unit will produce the 2170 cylindrical cells on which many electrical automobile producers rely. The corporate will make investments $3.2 billion in direction of this battery plant which is predicted to have an annual manufacturing capability of 27 GWh.

LG acknowledged that the Inflation Discount Act, which grew to become regulation in August and included federal incentives for the sale and manufacturing of electrical autos and batteries in america, influenced its resolution. The corporate had been planning its Arizona facility for a while, however the preliminary funding was to be round $1.3 billion; the extra bold $5.5 billion plans had been clearly influenced by the US Inflation Discount Act.

“We imagine it’s the fitting transfer on the proper time with a view to empower clear power transition within the U.S.,” Youngsoo Kwon, the corporate’s chief govt, stated in an announcement.

As well as, the corporate is investing $2.3 billion in a devoted power storage manufacturing web site. This manufacturing unit will manufacture LFP batteries to be used in both home or business electrical energy storage options. This facility is the world’s first to be solely devoted to the manufacturing of ESS batteries.

Other than GM and Tesla, Stellantis, Ford, VW, Audi, Volvo, Mercedes-Benz, Jaguar, and Porsche depend on LG batteries for his or her electrical vehicles, and having the batteries made within the US will imply at the least partial EV tax credit for a few of them and full EV tax credit score for the others.

Associated