EIB signs €480m loan deal with LG Chem Wroclaw Energy

WCN Editorial Team 27 Mar 2020 ASIA BUILDINGS

The European Investment Bank (EIB) has signed a €480m loan agreement with LG Chem Group’s Polish subsidiary LG Chem Wroclaw Energy to fund the construction of electric vehicle battery production facilities in Wroclaw, Poland.

The financing will be used by the firm to build and operate automated and innovative manufacturing facilities for advanced lithium-ion (Li-ion) cells and batteries for the battery-powered electric vehicles (BEVs).

LG Chem plans to use own resources and other financing sources in addition to EIB loan for the project, which is estimated to cost €1.5bn.

The project forms part of the company’s clean energy transition goal and the shift towards electrification of the transport industry in Europe.

With an annual production capacity of over 35GWh, the project is expected to contribute to the transition toward sustainable transport from fossil fuel-powered internal combustion engine-based vehicles.

EIB Poland vice-president Teresa Czerwinska said: “This first EIB operation with LG Chem Wroclaw Energy is significant for many reasons.

“It helps Europe to build a critical mass in electric vehicle battery production at a pivotal time of electric vehicle commercialisation in Europe; it promotes a shift to electromobility and to a greener automotive industry; and it helps create new qualified jobs in an industrial region in transition to a new economic model.”

The new investment programme is also expected to boot LG Chem’s battery capacity output to approximately 65GWh, and create more than 1 800 jobs at the Wroclaw site.

LG Chem Wroclaw Energy CFO Jeong Joon Ha said: “The loan provides our company with the resources to create a competitive battery value chain in Europe and Poland. Furthermore, it enables the LG Chem Group to take the lead in terms of growth of the European battery market and community development.”

LG Chem plans to shift towards electrification of the European transport industry. (Credit: StockSnap from Pixabay)

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