LG Energy Solution invests $5.58bn to build electric vehicle battery plant in US

South Korea's LG Energy Solution plans to build a new plant in Arizona to produce batteries for electric vehicles. The new site will cost more than $5 billion.

Here's What We Know

Throughout the second half of 2022, LG Energy Solution was reluctant to comment on information about the possible construction of the new plant. However, the company has recently officially confirmed its willingness to build the site.

LG Energy Solution intends to build two new plants at once. One factory will produce cylinder-shaped lithium batteries for electric cars. The second factory will produce lithium-iron-phosphate batteries for electricity storage systems.

LG Energy Solution was mulling building the new site until early last summer and wanted to invest less than $2 billion. In June, the company put the project on hold, arguing its decision was due to financial constraints.

The new facilities will appear in the state of Arizona. LG Energy Solution will spend about four times as much to build them as it originally planned. The new project will cost the South Korean company $5.58 billion.

It is possible that the manufacturer will receive government support that will save $45 per kWh of capacity. In addition, buyers of cars with batteries assembled in the USA will be able to claim a tax deduction of $7500.

Source: Reuters