Order Backlog Amounts to 110 Tril. Won
LG Chem is considering building a second battery plant in the United States after the first one in Michigan. The company is expected to make a decision on the matter soon in light of its large order backlog.
Reuters reported on July 11 that LG Chem was considering investing about US$1.7 billion to build a second battery plant in the United States with the aim of starting producing electric vehicle batteries in 2022. Strong candidate sites include Kentucky and Tennessee, and the company is expected to make a decision by the end of July.
"The global order backlog currently stands at 110 trillion won, which means that LG Chem needs to build more electric vehicle battery plants," a company official said. “We are studying various ways to meet the orders from global clients, but nothing has been determined regarding the construction of a new plant in the United States."
LG Chem is currently operating five battery production lines in Michigan. If the second plant is completed, it will considerably boost LG Chem’s battery production capacity. LG Chem plans to ramp up its electric vehicle battery production capacity to 110 GWh by 2020 from 35 GWh at the end of 2018.
Meanwhile, LG Chem vice chairman Shin Hak-cheol said at a news conference on July 9 that the company would nurture its electric vehicle battery business and increase battery sales from 6.5 trillion won last year to 31.6 trillion won by 2024.