LG Energy Solution announced that by the end of 2025, the company will invest more than $4.5 billion (KRW 5 trillion) in the company's own U.S. business to further expand its battery production capacity.
This new investment will allow the company to create a total of over 10,000 more jobs for new LG employees and subcontractors while securing an additional 70GWh in just the U.S. alone, and will be in addition to current and past investments.
In addition to the Green Field Project, LG Energy Solution and GM are currently discussing plans to build a second joint venture plant in the U.S., which will even further increase its cell production capacity. This second JV plant is expected to have a production capacity scale similar to the two companies' first plant, and is set to manufacture next generation EV cells based on advanced technology.
LG Energy Solution developed these plans over the last year to rapidly mobilize its Green Field Project in a full-fledged effort to ensure its position in the growing U.S. electric vehicle (EV) market. The Green Field Project will provide the U.S. with a large-scale supply of environmentally friendly batteries to increase renewable energy sources across an array of industries, including electric vehicles.
In terms of direct employment of new LG employees, the company will spike its current job count to 4,000 new jobs through these new commitments. This is in addition to the 1,400 jobs in Michigan and 1,100 jobs through its GM joint venture plant in Ohio. This is a total of 6,500 direct LG jobs in the U.S.
The company intends to use regional subcontractors in tandem with the additional production capacity expansion to strengthen the local economies at the new facility. This action is expected to generate more than 6,000 additional new jobs through subcontractors alone.
Within the first half of 2021, LG Energy Solution will select at least two location candidates for its factory intended to manufacture various types of batteries in the U.S. This will be followed by a meticulous board review before making final decisions.
The new LG Energy Solution facility will produce pouch cell batteries to be used in EVs and energy storage systems (ESS), as well as cylindrical cell EV batteries that are currently rapidly increasing in demand. LG Energy Solution stands as the first and only battery company to hold the experience and technology to mass produce these products.
All new LG Energy Solution plants in the U.S. will operate using 100 percent renewable energy, reinforcing the company's dedication to its Green Field Project. In the second half of last year, the Michigan battery plant began running entirely on renewable energy. ■