July 03, 2014 10:58
LG Chem plans to build a new plant in China to produce automotive batteries for 100,000 vehicles each year. The move comes as the company tries to tap into China's burgeoning market for electric vehicles.
The Chinese government plans to supply five million EVs by 2020, pushing the country past the U.S. to become the largest EV market.
LG Chem and Nanjing city government officials signed a memorandum of understanding in Seoul on Wednesday.
LG Chem will participate in a joint venture with Nanjing Zijin Technology Incubation Special Park Construction Development and Nanjing New Industrial Investment Group, both run by the Nanjing city government.
Battery production is slated to begin at the end of 2015.
"Once the Nanjing plant begins production, output there will generate more than W1 trillion in annual revenue by 2020," LG Chem President Kwon Young-soo said (US$1=W1,008).
LG Chem already has manufacturing plants in North Chungcheong Province capable of producing enough batteries for 200,000 EVs a year and another in the U.S. that can roll out batteries for 36,000 EVs annually.
LG Chem has won orders for batteries for 100,000 EVs from four Chinese automakers, including Qoros and Shanghai Automotive Industries Corporation, as well as global automakers operating in China.
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