LG Energy Solution Invests $5.58 Billion in U.S. Electric Vehicle Traction Battery Plant

South Korean company LG Energy Solution plans to build a new plant in Arizona for the production of traction

batteries for electric vehicles. The cost of the new site will be more than $5 billion.

What is known

During the second half of 2022, LG EnergySolution did not want to comment on the information about the possible construction of a new plant. However, the company has recently officially confirmed its readiness to create a platform.

LG Energy Solution intends to build twonew enterprises. One plant will produce cylinder-shaped lithium batteries for electric vehicles. The production of lithium-iron-phosphate batteries for electric power storage systems will be launched at the second factory.

Before the beginning of last summer LG Energy Solutionwas thinking about building a new site and wanted to invest less than $2 billion. In June, the company put the project on pause, arguing its decision with financial difficulties.

New businesses will appear in the state of Arizona.For their construction, LG Energy Solution will spend about four times more than it originally planned. The new project will cost the South Korean company $5.58 billion.

It is possible that the manufacturer will receivestate support, which involves saving $45 per kWh of capacity. In addition, buyers of cars with US-built batteries will be able to claim a $7,500 tax deduction.