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Sodion Energy , AR4 Tie Up To Launch Sodium-Ion Batteries For India
LG Energy Solution (LGES) will invest about $ 5.5 billion to construct a battery manufacturing complex in Queen Creek, Arizona. The complex will consist of two manufacturing facilities - one for cylindrical batteries for electric vehicles (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).
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LGES said that this marks the largest single investment ever for a standalone battery manufacturing facility in North America. The LGES facility will be also more than four times the amount the company initially announced last year to manufacture cylindrical EV batteries in the same location.
Out of the $5.5 billion, LGES plans to invest $3.2 billion in building cylindrical battery manufacturing facility with a capacity of 27GWh. This will be operationalised by 2025.
LGES will also invest $2.3 billion in LFP pouch-type battery facility with the capacity of 16GWh and this will start production in 2026. LGES mentioned in its official statement that both facilities, totaling 43GWh, plan to break ground this year.
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With the new battery manufacturing complex in the southwestern state, LGES will boost its production capacity in major product segments, develop more cohesive partnerships with its customers in both EV and ESS sectors, and cut back on the logistics cost by bringing its new manufacturing facilities in close proximity to its customers.
The cylindrical battery facility aims to start mass production of 2170 cells mainly for the EV makers in North America. LGES said that it is the first-ever U.S. cylindrical battery manufacturing facility solely invested by a Korean battery manufacturer. The company's decision to increase investment in cylindrical EV battery production in North America comes from rising demand from EV makers for locally manufactured high-quality, high-performance batteries in an effort to satisfy the Inflation Reduction Act (IRA)'s EV tax credits.
"Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed," said Youngsoo Kwon, CEO of LGES.
Last year, LGES announced its plan to invest $1.48 billion in a joint venture with Stellantis NV in Windsor, Canada, to produce 40 GWh of batteries.
