LG Energy Solutions (LGES) said it plans to invest 1.7 trillion korean won ($1.4 billion) to build a battery factory in Arizona by 2024.
LG Energy Solutions (LGES), a supplier to electric car makers Tesla and Lucid, said in Korea on Thursday it is planning to build a battery factory in Arizona by 2024 to meet demand from “major startups” of 1.7 trillion KRW (1.4 trillion KRW). billion dollars) is planning to invest. “and other North American customers.
LGES said it would be the first US factory to manufacture cylindrical cells, a type of battery used in Tesla and Lucid vehicles. LGES said in a statement that construction would begin in the second quarter of 2022, with mass production beginning in 2024 with a production capacity of 11 gigawatt hours.
Earlier, Reuters reported that potential customers would include EV makers Tesla, Lucid and Protera and Philip Morris, maker of iQOS heated-tobacco sticks. The report cited people familiar with the matter.
LGES said in a statement that it plans to consider acquiring additional production capacity at its Arizona factory in the future.
“The Arizona factory may add more production capacity in the future as we see increasing demand for cylindrical batteries from a variety of customers, including automakers and power tool manufacturers,” said an LGES official.
On Tuesday, Tesla CEO Elon Musk said battery production will be the “limiting factor” for vehicle production in two to three years. He has called on suppliers to ramp up production, while Tesla itself has started making cells.
Tesla, Lucid and Proterra did not immediately respond to requests for comment. Philip Morris declined to comment.
Public broadcaster NHK reported this month that Japan’s Panasonic Corp., along with contemporary Amperex Technology Co., Ltd., a Tesla supplier, will commit billions to build a factory to manufacture a new type of electric vehicle (EV) battery for Tesla. Wants to invest dollars.
NHK reported that Panasonic is looking to build a factory in Oklahoma or Kansas, not far from Tesla’s new Texas auto plant.
Lucid’s chief financial officer, Sherry House, told Reuters last month that the company, which has a car factory in Arizona, had signed multi-year supply agreements with two battery suppliers, and that the agreement would include “removal from state-side cell lines.” There is some potential to come.”
He did not identify the companies. Lucid Source batteries from LGES and Samsung SDI.
LGES, which raised more than $10 billion in its initial public offering in Korea in January, has announced a flurry of battery joint ventures with GM and Stellantis in the United States and Canada.
In August, US President Joe Biden signed an executive order aiming to make half of all new vehicles sold by 2030 electric.
(Reporting by Hyunju Jin and Hekyong Yang. Editing by Jane Merriman, David Gregorio and Bernard Orr)
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