LG Energy Solution reveals new plan to expand EV battery production
LG Energy Solution, a South Korean lithium-ion battery cell developer, has recently announced a USD 567 million plan to expand battery production for electric vehicles in the country. The new battery plan includes next-generation 4680-type cylindrical batteries, which are comparatively bigger than the current conventional designs.
It is worth noting that LG Energy plans to invest USD 452.1 million in its factory in Ochang, North Chungcheong Province, from June 2022 to October 2023 by adding a 9 gigawatt-hour production line to supply giant carmakers such as Tesla in the United States.
According to the company, the new production line will begin producing cylindrical batteries with a diameter of 46 millimeters and a length of 80 millimeters in the second half of 2023. The remaining USD 116 million will be spent in Ochang, for the producing traditional 2170 type cylindrical batteries, thus increasing the plant's capacity by 4 gigawatt-hours.
For those unaware, this is the first time LG Energy Solution has substantiated a mass manufacturing plan for battery cells that are expected to be larger and more energy-efficient than current cylindrical batteries. Tesla intends to use the 4680 batteries to power its forthcoming Model Y electric automobiles.
The announcement comes months after LG Energy’s Japanese competitor Panasonic revealed plans to mass-produce 4680 batteries ahead of LG’s production plans. By 2025, the Ochang plant will have a total capacity of 35 gigawatt-hours for battery manufacture.
According to LG Energy Solution's first-quarter results, the company plans to secure a combined 200 gigawatt-hour production capacity by the end of 2022 in Europe, North America, and Asia, and a 520 gigawatt-hour storage by 2025.
At the closing of trade on local stock exchanges, LG Energy's market capitalization was USD 98.3 billion making it South Korea’s second most valuable company after Samsung Electronics.
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