SEOUL/DETROIT (Reuters) – South Korean electric vehicle (EV) battery maker LG Chem is considering building a second U.S. factory, three people familiar with the matter said, accelerating a race to add capacity to meet growing global demand for green vehicles.
LG Chem, one of the leading EV battery makers in the world that counts General Motors and Volkswagen among its customers, is weighing investing about 2 trillion won ($1.70 billion) in the plant that could begin production in 2022, one of the people said. Kentucky and Tennessee are among the candidates for the plant’s site, the person said.
Decision - Plant - Site - End - Month
A decision on the plant’s site is expected to be made by the end of this month, another person said.
Automakers are pushing ahead with billions of dollars in investments in electric vehicles to meet global regulatory requirements. A new plant by LG Chem would come as South Korean companies have stepped up U.S. investments, moves that have been praised by U.S. President Donald Trump.
LG - Chem - Factory - Volvo - Fiat
LG Chem’s new factory would primarily supply to Volvo, Fiat Chrysler Automobiles, and potentially to Hyundai Motor, GM and Volkswagen, one of the people said.
LG Chem, the most valuable company of the LG conglomerate, said in a statement issued to Reuters it is reviewing various ways to meet its global clients’ orders, but there are no concrete plans at the moment. The sources declined to be named as the plan is confidential.
US - Plant - Rivalry - LG - Chem
A second U.S. plant would come amid a growing rivalry between LG Chem and crosstown rival SK Innovation, which recently broke ground on its $1 billion U.S....
Wake Up To Breaking News!