LG Chem Mulls Second US EV Battery Plant
SEOUL—LG Chem is considering building a second U.S. factory to make batteries for electric vehicles.
The South Korean company is one of the leading manufacturers of EV batteries and counts General Motors and Volkswagen among its customers. The new factory would cost $1.7 billion and could begin production as soon as 2022. Kentucky and Tennessee are among the candidates for the plant’s site.
The new factory would primarily supply Volvo, Fiat Chrysler Automobiles, and possibly Hyundai Motor, GM and Volkswagen.
LG Chem, the battery supplier for GM’s Bolt, currently operates an EV battery plant in Michigan. LG Chem also has production bases in South Korea, China and Poland.
Electric vehicle sales are projected to reach 1.28 million vehicles by 2026 in the United States alone, compared with less than 200,000 in 2018, according to market researcher IHS Markit.