LG Energy Solution’s global EV battery manufacturing network includes plants in each of South Korea and Poland and two in China, with a total production capacity estimated at 120 gigawatt hours (GWh) – enough to power close to 2 million electric vehicles. This is expected to at least double in the next five years. In July of this year LG Energy Solution announced plans to invest over US$12bn to develop next-generation battery technology and to expand domestic production capacity to help meet growing global demand for electric vehicles. The company is also investing heavily in its overseas operations, including a planned investment of US$4.5bn in the USA by 2025 to establish a production capacity of 75 GWh. Here, the company is also building battery plants in partnership with General Motors to power the US carmaker’s upcoming range of purpose-built EVs.EV demand in the USA is expected to grow rapidly following the Biden administration’s Green New Deal initiative, with leading US automakers including GM and Ford planning to switch their vehicle ranges entirely to electric powertrains by 2035. In the long term LG aims to have in place a production capacity of some 110 GWh per year in this region alone.In September LG Energy Solution signed a joint venture agreement with Hyundai Motor to build an EV battery plant in Indonesia, tapping in to the South-east Asian country’s abundance of nickel – a key raw material used in lithium-ion batteries. The facility will have an initial production capacity of 10 GWh per year from 2024, to be expanded at a later stage.LG Group companies are under tremendous pressure to secure access to sufficient raw materials and to establish a strong supply chain to match the LG Energy Solution’s EV battery ambitions. Earlier this year LG Chem Ltd, the parent of Energy Solution Ltd, said it expects the global market for battery materials will grow from US$34bn in 2021 to US$87bn by 2026.LG Chem said it is looking to expand annual production of battery cathodes from the current 40,000 tons to 260,000 tons per year by 2026 and in August it agreed to take over LG Electronics’ battery separator business for KRW525bn (US$444m), as part of a KRW6trn (US$5bn) plan to strengthen its battery supply chain operations by 2025. The company is also set begin construction of a new separator factory in the South Korean city of Gumi at the end of the year with an annual production capacity of 60,000 tons.In the last year the group has signed deals with mining companies around the world, including China’s Great Power Nickel & Cobalt Materials Company, Australian Mines Limited, Chilea’s SQM and the Indonesian government to secure supplies of raw materials for the next ten years. QUOTE LG long held shareholding in COB could play dividends for both companies IMO.
https://www.just-auto.com/features/south-korea-eyes-major-stake-in-global-ev-battery-market/?utm_source=Army%20Technology&utm_medium=website&utm_campaign=Must%20Read&utm_content=Image
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