LG is investing $5.58 billion to build an electric vehicle battery factory in the US

LG Energy Solutions is investing $5.58 billion to build an electric vehicle battery factory in the United States

South Korea’s LG Energy Solutions plans to build a new plant in Arizona to make batteries for electric vehicles. The new site will cost $5 billion.

Here’s what we know
Throughout the second half of 2022, LG Energy Solutions is reluctant to comment on news of the potential construction of a new plant. However, the company recently officially confirmed its intention to develop the site.

LG Energy Solutions intends to build two new power plants simultaneously. The factory will make cylindrical lithium batteries for electric cars. The second plant will produce lithium-iron-phosphate batteries for electricity storage systems.

LG Energy Solutions was considering building a new platform as early as last summer and wanted to invest less than $2 billion. In June, the company put the project on hold citing financial constraints.

The new facilities will appear in the state of Arizona. LG Energy Solutions will spend four times more to build them than originally planned. The new project will cost the South Korean company $5.58 billion.

The manufacturer can receive government subsidies that save $45 per kWh of capacity. Additionally, buyers of cars with assembled batteries in the US can benefit from a $7,500 tax credit.

Reuters