Tesla’s battery supplier LG Energy Solutions has announced that it will build a $ 1.4 billion battery production facility in Arizona to meet the surge in demand for electric vehicles in the United States.
LG Energy Solutions said it will build a $ 1.4 billion plant to meet the demands of “prominent starters” and other North American companies as consumer sentiment is beginning to shift to sustainable vehicles. The company believes the factory will be operational by 2024.
The Arizona plant will be LGES’s first US plant to manufacture cylindrical electric vehicle cells commonly used by automakers such as Tesla and Lucido, which have automotive production facilities in Arizona. LGES is expected to begin construction of the plant in the second quarter of 2022, and mass production is expected to begin in 2024 with a capacity of 11GWh, LGES said in a statement.
Youngsoo Kwon, CEO of LG Energy Solution, said: “LGES offers the most reliable, competitive and advanced products to grow as the best business partners that our clients value and trust.”
Tesla and Lucido could be one of the potential customers to benefit from the plant. In addition, heat-not-burn tobacco stick makers Protera and Philip Morris could be other non-automotive companies that receive cells from the factory, Reuters said. However, these companies have not confirmed the link to the plant.
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LGES said it has the potential to expand the potential capacity of the plant in the future. According to the company, the facility will be operated as a “smart factory” using cutting-edge technology. Using remote support, manufacturing intelligence, logistics automation and more, LGES leverages state-of-the-art production technology and expertise in mass production of batteries to “meet consumer demand in a stable manner, the company in North American batteries. We are planning to secure the leadership of the company. market. “
“The Arizona plant has the potential to add more production capacity in the future as demand for cylindrical batteries from a variety of customers, including automakers and power tool makers, is increasing,” said an LGES official. It states.
Automotive CEOs want to increase cell availability as more companies embrace the move to EVs. Tesla CEO Elon Musk said earlier this week that cell availability will be a “limiting factor” for the next few years. In a call to the company’s earnings in the past, Musk and other Tesla executives said cell constraints were a real bottleneck in production. Tesla has increased its annual production to nearly one million units a year, but has postponed several projects, including cybertrucks, as cell availability continues to limit automakers’ efforts on new projects.
Musk confirmed that Tesla will not launch a new product in 2022, effectively delaying some new cars until 2023.
LGES raised more than $ 10 billion in a Korean IPO in January and announced other battery ventures with other EV makers such as General Motors and Stellantis.
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Tesla’s battery supplier LG Energy Solutions announces a $ 1.4 billion battery plant in Arizona
