[Seoul, 29th, Reuters]–A spokesman for LG Energy Solutions, the largest electric vehicle (EV) battery company in South Korea, announced on March 29 that it will build a battery factory in Arizona, USA, 1.3 billion. The company confirmed that it plans to reassess its dollar investment. The reason was the economic environment of the United States.
LG Electronics has issued a statement that it is reviewing various investment options due to the unusual economic situation and investment environment in the United States, without naming the Arizona plant. The statement said nothing had been decided.
The company envisions EV battery customers such as Tesla, a major US EV, General Motors (GM), a major US automobile, and Volkswagen (VW), a major German automobile. We are constructing factories in Ohio, Tennessee, and Michigan in collaboration with GM. It also plans to expand its existing plant in Michigan.
The announcement of the Arizona plant in March explained that it plans to start construction in the April-June period of this year and start mass production in 2024 in order to meet the demand of start-up companies in North America. It was said that it would be the company’s first factory to produce cylindrical batteries in the United States. This type of battery is used in Tesla and EV Emerging Lucid Motors.
Cho Hyunryul, an analyst at Samsung Securities, said, “At present, it is unlikely that LG Energy will withdraw its investment in the Arizona plant, but the rising costs associated with US inflation should make it necessary to rethink profitability forecasts.” Pointed out. Inflation can lead to higher raw material costs, construction costs and labor costs.
LG Electronics has production bases in South Korea, China, Poland, Canada and Indonesia other than the United States.