Report: LG Chem to Invest $11B in U.S. EV Battery Operations by 2025
YOUNGSTOWN, Ohio – Korean chemicals giant LG Chem said Tuesday that it plans to invest more than $11 billion in its U.S. electric-vehicle battery operations by 2025, according to reports from Korean news outlets.
The announcement came as LG Chem officials welcomed U.S. Secretary of Treasury Janet Yellen on her two-day tour of Korea.
“Through our special relationship with American automotive OEMs, we hope to continue to advance our vision to develop and provide new-to-the-world innovation to the EV industry in the United States,” LG Chem CEO and Vice Chairman Chin Hak-cheol said, according to the Korea Times. “LG Chem is actively considering establishing a cathode manufacturing plant in North America to strengthen the battery supply chain. Collectively, these battery-related investments for localizing the supply chain in the United States exceed $11 billion cumulatively by 2025.”
LG Chem owns 81% of LG Energy Solution, the entity that has established a joint venture with General Motors Co. to form Ultium Cells LLC. Ultium is nearing completion of its $2.3 billion battery-cell manufacturing plant in Lordstown.
Ultium is also building a similar plant in Spring Hill, Tenn., and has plans to build a third in Michigan.
The location of a fourth plant is likely to be announced during the second half of this year.
LG Chem was the only company that Yellen toured on her visit, according to reports. During her visit, she emphasized the importance of working with allies to build reliable, sustainable supply chains.
“Working with allies and partners through ‘friend-shoring’ is an important element of strengthening economic resilience while sustaining the dynamism and productivity growth that comes with economic integration,” Yellen said.
Copyright 2022 The Business Journal, Youngstown, Ohio.