July 12, 2019 13:21
LG Chem is considering building a second electric vehicle-battery plant in the U.S.
Reuters reported on Thursday that the company is mulling building the factory in Kentucky or Tennessee with a budget of W2 trillion and hopes of starting operations in 2022 (US$1=W1,175).
The decision will be made at the end of this month. "LG Chem's new factory would primarily supply to Volvo, Fiat Chrysler... and potentially to Hyundai Motor, GM and Volkswagen," Reuters said citing an industry insider.
LG Chem already has an EV battery factory in Michigan which was built in 2012. There has been a rapid increase in demand for EV batteries. LG Chem has an order backlog of W110 trillion for global clients in the first quarter of this year. To meet these orders, expanding production facilities is a must.
But a company staffer said, "It's true that we are considering building more production facilities, but nothing has been decided yet."
LG Chem also is considering building more plants in Europe after a factory in Poland started operations last year.
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