To Finance Expansion of Battery Plants in the U.S.
LG Energy Solution will invest US$681 million (about 788.1 billion won) in its subsidiary in Michigan of the United States.
LG Chem announced on Nov. 26 that its subsidiary LG Energy Solution made the decision at a board meeting on Nov. 25. LG Energy Solution plans to make the investment in installments by 2024.
LG Energy Solution’s Michigan subsidiary plans to secure a total of 1.576 trillion won by taking out loans of the same size as the investment. The funds will be used as investment resources to cope with the expansion of the North American electric vehicle and energy storage system (ESS) markets, the company explains.
LG Energy Solution is running a 5GWh battery cell plant in Michigan. A joint venture established with General Motors (GM) is building two 35GWh battery production plants in Ohio and Tennessee. Recently, it also announced plans to establish a 40GWh joint venture plant with Stellantis, which owns Chrysler, one of the top three car brands in the United States.