LG Energy Solution, the division of the South Korean company that makes batteries, will invest more than $ 4.5 billion in battery production in the United States by 2025.
This increase in production is due to more and more automakers, in particular General Motors, one of their key partners, committing to produce electric vehicles earlier than expected.
More electric cars, more batteries
The Korean company, which has a joint venture with US automaker General Motors, said the investment will help create 10,000 jobs, including subcontractors.
GM and LG are currently building a $ 2.3 billion battery plant in Lordstown, Ohio, near Cleveland, which will be completed in 2022 and employ approximately 1,000 employees. This production center would join those in Detroit and another city north of Orion, Michigan. The two companies are expected to make a decision on the second site in the first half of this year.
General Motors is committed to updating its entire global fleet by 2035 and even revamping its company logo to include a picture of an electrical outlet. The 112-year-old US automaker has pledged to launch 30 new battery-powered cars around the world within five years. That means GM surely needs a lot more battery capacity.
Ultium batteries, for new GM electric vehicles.
The future of vehicles is electric
According to predictions by the consulting firm LMC Automotive, it is estimated that sales of vehicles powered by batteries in the United States will exceed one million annually from 2023 and will exceed 4 million in 2030.
Not only is President Joe Biden’s administration developing a plan to combat climate change, it is also prioritizing new supply chains, which are now considered a national security issue. That includes everything from the production of computer chips to batteries, most of which are typically purchased from China and other countries.
The goals of the president and America’s automakers will be a driving factor in the growth of the nation’s electric vehicle and energy storage markets.said Jong Hyun Kim, CEO of LG Energy Solution. LG Energy Solution is dedicated to expanding its battery production capacity and building a stable and localized supply chain that provides everything from R&D to production, I added.
The future of vehicles is hand in hand with electric power and the support of any technology classified as sustainable. From now on, companies that ignore this path will suffer the consequences of not having prepared for this evolutionary leap.
This alliance between LG Energy Solution and General Motors, which also includes its brands Chevrolet, GMC, Buick and Cadillac, dates from 2019 and the aforementioned boost to the production of batteries is part of the initiative of the multinational of vehicles of create a future all-electric environment that is inclusive and accessible to all.