LG Chem made an announcement on the 26th that Michigan, a subsidiary of LG Energy Solution, a battery business in North America, has decided to raise $681 million (788.1 billion won) for the facility in Michigan.
The company will invest a total of 1.5762 trillion won to expand the battery facility with funds from the region.
LG Energy Solution currently operates a plant in Michigan that produces 5GWh of batteries used in electric vehicles and energy storage systems (ESS) annually.
On top of that, General Motors (GM), the country's No. 1 automaker, is building two joint plants (Ohio and Tennessee) with a capacity of 70GWh per year and decided to build a joint plant with an annual capacity of 40GWh with Stelantis last month.
In addition, the company has decided to secure battery production capacity of 150GWh in the United States alone by adding one or two plants to operate independently.
This can be supplied to 2 million medium-sized sedan-class pure electric vehicles. The site of the Stelantis joint plant or additional independent plant has yet to be decided. With additional funding raised this time, LG's decision to invest in North America alone is estimated to be close to 7 trillion won.
According to the quarterly report, as of the end of September, the amount decided to invest in the U.S. was 5.28 trillion won, of which it has invested just over 800 billion won so far.
Some predict that it may not be easy to raise funds as the company has a lot of money to pay due to recall issues and its initial public offering (IPO) schedule has been delayed than originally planned.
However, in April of this year, the company decided to receive 2 trillion won as settlement money after finishing the lawsuit with SK.
Reporter Lee Ji-sun stockmk2020@gmail.com
