Dive Temporary:
- LG Power Answer plans to take a position $5.5 billion to construct a battery complicated in Queen Creek, Arizona, in accordance with a March 24 press launch.
- The complicated will include two battery services, one to fabricate cylindrical EV batteries and one other to produce lithium iron phosphate (LFP) batteries for power storage techniques.
- Manufacturing on the cylindrical EV battery plant is slated to start in 2025, whereas the second web site is predicted to open in 2026.
Dive Perception:
That is LG Power Answer’s second funding in Queen Creek, which expands on its $1.4 billion funding made final 12 months for its first cylindrical battery plant within the U.S.
Of the newly introduced $5.5 billion, $3.2 will go towards the cylindrical battery manufacturing facility, which might have a capability of 27 gigawatt-hours a 12 months.
The remaining $2.3 billion will go towards the LFP battery facility, with a capability of 16 gigawatt-hours yearly.
LG Power Answer’s preliminary funding within the Queen Creek cylindrical battery plant initially would have produced 11 gigawatt-hours yearly and was anticipated to come on-line subsequent 12 months, in accordance with final 12 months’s announcement.
The investments are half of a bigger progress plan LG Power Answer has for the U.S. market. In January, the corporate signed a deal with Hanwha Group to construct battery manufacturing services within the U.S. The 2 firms can even collaborate on power storage techniques for business, industrial and utility markets.
LG Power Answer is one in all a number of overseas producers organising store in Arizona. TSMC introduced in December that it had begun building on its second fab facility in Arizona, which is about to begin manufacturing in 2026. The corporate expects to take a position roughly $40 bilion on the 2 Arizona websites.
LG’s host of related firms are additionally investing in battery vegetation throughout the nation. In November, LG Chem introduced it was constructing a $3.2 billion cathode manufacturing facility in Clarksville, Tennessee.