LG Energy Solution (LGES), a South Korean firm that supplies electric vehicle batteries to automakers, is scouting for sites in Europe to build a new electric vehicle battery plant, reported Reuters.
The firm stated that it is responding to growing demand in Europe for cylindrical batteries for electric vehicles.
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However, the company did not disclose how much it intends to invest in the new plant.
It also did not state the timeframe for construction.
The company also plans to use its production sites in Asia, outside of South Korea and China, such as in Indonesia, with an aim to better respond to demand from customers.
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In post earnings conference call, LGES chief financial officer Lee Chang Sil was quoted by the news agency as saying: “With the easing chip shortage and auto customers’ plans to launch new models as well as solid EV demand among customers, we expect solid demand for pouch and cylindrical EV batteries in the second half of this year.”
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By GlobalDataMeanwhile, LGES stated that it was analysing $1.29bn investment in a cylindrical cell plant in Arizona and would issue a statement on the issue in three months.
Although the customer demand is same, extreme inflation and increasing logistics and building costs has prompted it in June to postpone construction.
In March, the company had stated that this plant would commence production in Q2 2022.
LGES also stated that it intends to commence selling lithium iron phosphate (LFP) batteries made at its China facility next year.
The company plans to install a new LFP battery production line at its Michigan factory in 2024 to meet growing demand in North America.
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Image: With the new plant, the company plans to tap the growing demand in Europe for cylindrical batteries for electric vehicles. Credit: (Joenomias) Menno de Jong from Pixabay.
