LG Energy Solution announces that it will invest more than $ 4.5 billion (approximately Rs.32,750 billion) in its US battery production business by 2025 as automakers accelerate production of electric vehicles.
The Korean company, which has a joint venture with US automaker General Motors, said the investment will help create 10,000 jobs, including subcontractors.
GM and LG are currently building a $ 2.3 billion (approximately Rs.16,740 billion) battery factory in Lordstown, Ohio, near Cleveland, which will employ approximately 1,000 people when completed in 2022 will be vehicle plants, one in Detroit and the other north of town in Orion Township, Michigan. The companies hope to be able to make a decision on a second location in the first half of the year.
General Motors changed its corporate logo and launched an electric vehicle marketing campaign to change its image as a clean vehicle company rather than a manufacturer of gas-powered pickups and SUVs. The 112-year-old Detroit automaker has promised to launch 30 new battery-powered vehicles worldwide by the end of 2025 and announced on Friday that the new campaign will highlight its progressive vision for the future.
GM will likely need far more battery capacity to meet its goal of converting all new passenger cars from internal combustion engines to electricity by 2035. Consulting firm LMC Automotive predicts that US battery-powered vehicle sales will exceed 1 million annually from 2023 and over 4 million by 2030.
Industry analysts have found that automakers around the world face battery shortages as the industry turns away from gasoline-powered vehicles. Most of the world’s batteries are made in China and other countries.
LG’s investment also comes after President Joe Biden’s administration set out its plans to tackle climate change, which will likely include taking over the oil and gas industry.
“The goals of the US president and automakers will be a driver for the growth of the country’s electric vehicle and energy storage systems markets,” said Jong Hyun Kim, CEO of LG Energy Solution. “LG Energy Solution is dedicated to expanding its battery production capacity and structuring a stable, localized supply chain that offers everything from research and development to production.”
LG also makes batteries for Chevy’s electric studs.
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