LG Energy Solution says it will spend more than $4.5 billion in its own U.S. battery Manufacturing company by 2025 since automakers ramp up production of electrical vehicles
NEW YORK — LG Energy Option will invest more than $4.5 billion in U.S. battery manufacturing by 2025 as more automakers devote to churning electric vehicles earlier than anyone had anticipated.
The Korean firm, that has a joint venture with U.S. automaker General Motors, said the investment can help create 10,000 jobs, such as subcontractors.
GM and LG are now building a $2.3 billion battery mill in Lordstown, Ohio, near Cleveland, which will employ about 1,000 people when it’s finished in 2022. The site is fairly near GM’s two additional designated electrical car plants, one in Detroit and another north of town in Orion Township, Michigan. The companies expect to get a decision on a second website in the first half of this year.
General Motors has vowed to make its whole global fleet largely electric by 2035, shifting its company logo to incorporate the likeness of an electric plug. The 112-year-old Detroit automaker has promised to roll out 30 new battery-powered vehicles worldwide within five years.
That means GM is very likely to need a lot more battery capacity.
The consulting firm LMC Automotive predicts that U.S. battery powered vehicle sales will surpass 1 million annually starting in 2023, and transcend 4 million by 2030.
Not only is the government of President Joe Biden laying out strategies to tackle climate change, it is also prioritizing new supply chains which it currently considers a national security concern.
That includes everything from computer chips to batteries, the majority of which are constructed in China and other countries.
LG Energy Solution is dedicated to expanding its battery manufacturing capacity and structuring a stable, localized supply chain that provides everything from R&D to production.”
LG also makes batteries for Chevy’s electric Bolt.