LG Energy Solution (LGES), a major supplier of batteries to Tesla, has announced plans to increase its investment in a battery plant in Arizona to $5.5 billion. This is four times the original amount that was announced when the project was first unveiled in December 2020.
The plant, which is expected to begin production in 2023, will produce advanced lithium-ion batteries for electric vehicles (EVs) and energy storage systems. The increased investment will allow LGES to expand the plant’s production capacity and create more jobs in the region.
The decision to increase investment in the Arizona plant comes as demand for EVs continues to grow worldwide. According to a report by BloombergNEF, sales of EVs are expected to increase from 2.5 million in 2020 to 31.1 million in 2030. This growth is being driven by falling battery costs, government incentives, and increasing consumer awareness of the environmental benefits of EVs.
LGES is one of the world’s leading producers of lithium-ion batteries, with a market share of around 25%. The company supplies batteries to a range of global automakers, including Tesla, General Motors, and Ford.
Tesla is one of LGES’s largest customers, and the two companies have a long-standing partnership. Tesla currently uses LGES batteries in its Model 3 and Model Y vehicles, and the companies are reportedly working together on developing new battery technologies.
The increased investment in the Arizona plant is expected to further strengthen the partnership between LGES and Tesla. The plant will be located close to Tesla’s Gigafactory in Nevada, which produces batteries for Tesla’s electric vehicles and energy storage products.
The Arizona plant is also expected to create thousands of jobs in the region. According to LGES, the plant will create 1,000 direct jobs and 4,000 indirect jobs in the local community. This is welcome news for Arizona, which has been hit hard by the COVID-19 pandemic and the resulting economic downturn.
In conclusion, LG Energy Solution’s decision to increase investment in its Arizona battery plant is a positive development for the EV industry and the local community. The plant will produce advanced lithium-ion batteries for electric vehicles and energy storage systems, helping to meet the growing demand for EVs worldwide. The increased investment will also create more jobs in the region, providing a much-needed boost to the local economy.
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- Source: Plato Data Intelligence: PlatoData