South Korean battery makers have stepped up their US investment ambitions and announced cumulative spending since 2018, which now totals $13 billion.
South Korean battery makers have stepped up their US investment ambitions and announced cumulative spending since 2018, which now totals $13 billion. Plans worth $5.5 billion have been flagged off this year alone.
Inspired by the incentives that came with the Biden administration’s push to move the electric vehicle (EV) supply chain away from the United States and China, his plans for factories now span seven states.
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Plans from LG Energy Solutions (LGES), SK On and Samsung SDI Co., Ltd. seek to build an additional 320 gigawatt hours (GWh) of capacity over the next few years – or enough additional production to supply 4 million EVs, equivalent to Tesla’s. . Model 3.
It’s a big bet that electric vehicles are about to increase in popularity in the United States. EVs and plug-in hybrids accounted for only 5% of the US auto market last year.
LGES and SK On currently have installed US capacity of approximately 15 GWh per year with plants in Michigan and Georgia respectively. That compares to 39 GWh for Japan’s Panasonic Holdings Corp., which supplies battery cells to Tesla Inc. from the automaker’s Gigafactory in Nevada.
Panasonic is expected to announce a new plant to meet the growing demand for Tesla. Sources also said that China’s Contemporary Amperex Technology Co Ltd (CATL), the world’s top global battery supplier, is in the final stages of investigating sites for plants in the United States.
LGES
Commanding the largest share of the US battery market among South Korean suppliers, LGES has announced investments of more than $5.5 billion from 2019, aiming to manufacture approximately 160 GWh of batteries per year by 2025.
It is building three plants with General Motors in Ohio, Tennessee and Michigan, has a standalone factory in Arizona and will expand an existing factory in Michigan.
It is also planning a venture with Stelantis NV in Canada, which is expected to have an annual production capacity of 45 GWh by 2026.
Its customers include Tesla, GM and Volkswagen.
SK ON
The SK Innovation Company Limited entity has announced an investment of approximately $6.3 billion from 2018 to build two stand-alone factories in Georgia and three plants with Ford in Tennessee and Kentucky.
Overall, it aims to have a capacity of over 150 GWh in the country.
Its customers include Ford Motor Company, Hyundai Motor Company and Volkswagen.
SK ON is also expected to join the plans of Hyundai Motor Group, which includes Hyundai Motor and Kia Corp, to invest $5.5 billion in Georgia to build EV and battery facilities. SK ON will supply the batteries for Hyundai’s Ionic 7 which will be built there, a source has previously told Reuters.
Samsung SDI
An affiliate of Samsung Electronics Co., Ltd. has joined hands with Stelantis to invest up to $3.1 billion in a battery plant in Indiana. The investment share of Samsung SDI is $1.3 billion, although it may increase to $1.6 billion.
The enterprise aims to start production in 2025 with an initial annual production capacity of 23 GWh which will climb to 33 GWh over the next few years.
Samsung SDI customers include BMW, Ford and Volkswagen.
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