On November 29, South Korea-based LG energy solutions are planning to invest US$681 million (approximately 5000 crore INR) in its subsidiary in Michigan of the United States. LG Chemicals announced on Nov. 26 that its subsidiary LG Energy Solution decided at a board meeting on Nov. 25.
LG Energy Solution is expected to invest in installments by 2024. As per the reports from Business Korea, the subsidiary of LG Energy solutions intends to acquire 1.362 billion US dollars by securing loans of the same scale as the investment.
LG Energy Solution described that the guaranteed fund would be used as an investment resource to extend the North American electric vehicle and energy storage system (ESS) market. It is known that LG is an eminent display manufacturer; now, LG is also expanding its vast network in the battery field with LG Energy Solutions.
LG Energy Solution manages a 5 GWh battery plant in Michigan, and also LG and General Motors (GM) unitedly constructed two 35 GWh battery production plants in Ohio and Tennessee. The company has also had an agreement with Automaker Stellantis in October 2021 to build a 40GW plant in North America.
The plant is expected to kick start by the first quarter of 2024 and plans to have an annual production capacity of 40 GW. The joint venture’s goal is to increase the sales of Stellantis e-vehicles by 40% in the US by 2030.