LG to spend $5.5 billion on Arizona battery factory
Investment plans for battery production in the United States have increased since President Biden signed a law that offers generous incentives for electric cars and green energy.
A South Korean battery maker has announced it will quadruple its planned investment in a new plant in Arizona to meet demand growth of automakers trying to increase production of electric cars and trucks.
< p class="css-at9mc1 evys1bk0">The company, LG Energy Solution, said it would invest $5.5 billion to build the complex near Phoenix, where it plans to manufacture batteries for electric vehicles in 2025 and for energy storage systems next year.LG said its decision was driven in part by the Curbing Inflation Act, which took effect in August and included federal incentives for sale and production of electric vehicles and batteries in the United States. Customers of LG, which is one of the world's largest manufacturers of electric car batteries and energy storage devices, include General Motors, Ford Motor, Honda and Tesla.
"We believe this is the right move at the right time to help drive the clean energy transition in the United States," Youngsoo Kwon, the company's chief executive, said in a statement. .
The multi-billion dollar investment is the latest from battery and automakers since President Biden signed the cut bill. inflation. Michigan, where it would use technology and services provided by the world's largest battery manufacturer, China's Contemporary Amperex Technology Company Limited, known as CATL. Ford is also building battery factories in Kentucky and Tennessee with another company South Korean summer, SK On.
In December, the Department of Energy announced it would lend $2.5 billion to Ultium Cells, a joint venture owned by General Motors and LG, to build battery factories in Ohio, Tennessee and Michigan. Honda and LG are also investing $3.5 billion to build a battery factory in Ohio.
A wave of new factories is expected to boost battery manufacturing capacity tenfold in North America from 2021 to 2030, according to a recent report from Argonne National Laboratory.
Building batteries in the United States could help lower prices electric vehicles by reducing transportation costs while reducing dependence on China, which dominates the battery supply chain. Additionally, the Biden administration is trying to encourage domestic mining and processing of battery feedstocks like lithium, as well as accelerating the construction of electric vehicle chargers along highways.
Investment plans for battery production in the United States have increased since President Biden signed a law that offers generous incentives for electric cars and green energy.
A South Korean battery maker has announced it will quadruple its planned investment in a new plant in Arizona to meet demand growth of automakers trying to increase production of electric cars and trucks.
< p class="css-at9mc1 evys1bk0">The company, LG Energy Solution, said it would invest $5.5 billion to build the complex near Phoenix, where it plans to manufacture batteries for electric vehicles in 2025 and for energy storage systems next year.LG said its decision was driven in part by the Curbing Inflation Act, which took effect in August and included federal incentives for sale and production of electric vehicles and batteries in the United States. Customers of LG, which is one of the world's largest manufacturers of electric car batteries and energy storage devices, include General Motors, Ford Motor, Honda and Tesla.
"We believe this is the right move at the right time to help drive the clean energy transition in the United States," Youngsoo Kwon, the company's chief executive, said in a statement. .
The multi-billion dollar investment is the latest from battery and automakers since President Biden signed the cut bill. inflation. Michigan, where it would use technology and services provided by the world's largest battery manufacturer, China's Contemporary Amperex Technology Company Limited, known as CATL. Ford is also building battery factories in Kentucky and Tennessee with another company South Korean summer, SK On.
In December, the Department of Energy announced it would lend $2.5 billion to Ultium Cells, a joint venture owned by General Motors and LG, to build battery factories in Ohio, Tennessee and Michigan. Honda and LG are also investing $3.5 billion to build a battery factory in Ohio.
A wave of new factories is expected to boost battery manufacturing capacity tenfold in North America from 2021 to 2030, according to a recent report from Argonne National Laboratory.
Building batteries in the United States could help lower prices electric vehicles by reducing transportation costs while reducing dependence on China, which dominates the battery supply chain. Additionally, the Biden administration is trying to encourage domestic mining and processing of battery feedstocks like lithium, as well as accelerating the construction of electric vehicle chargers along highways.
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