LG Energy increases battery production in the US with $1.4B investment
Author: Kate Park, Rebecca Bellan
South Korea’s LG Energy Solution, which supplies electric vehicle batteries to Tesla, Lucid Motors, General Motors and Proterra, said on Thursday it is investing $1.4 billion to build a cylindrical battery plant in Queen Creek, Arizona. The move is a clear indication that LG Energy is increasing its presence in the United States. In January, the company said it plans to spend $2.1 billion with General Motors to build a third joint EV battery plant in the U.S. Last year, Stellantis also reached a deal with LG to produce battery cells and modules in North America. LG’s Arizona investment comes at a time when the demand for cylindrical cells and applications that use cylindrical batteries, such as electric tools that need instant power or mobility devices like EVs or e-bikes, is on the rise in the North American market. That’s because these types of batteries are relatively smaller but have high energy density, according to an LG spokesperson.