LG New Energy shelves plans for new Arizona factory

According to Reuters, South Korean battery maker LG New Energy(LGES) plans to re-evaluate its construction of standalone batteries in Arizona, U.S., given the current economic environment in the U.S., a spokesman for South Korean battery maker LGNew Energy(LGES) said on June 29. Factory plan.

The spokesman's comments were in response to a statement issued by LGES that day."In light of the unprecedented economic conditions and investment climate in the United States, LGES is studying various investment options," the company said in a statement.However, the statement said no final decision has been made and did not mention plans for a new plant in Arizona.

On March 24 this year, LGES said it would spend 1.7 trillion won (about $1.4 billion) to build its own battery plant in Queen Creek, Arizona, with acapacity of11GWh to provide cylindrical batteries for electric startups.Construction of the plant will begin in the second quarter of this year, with mass production expected in the second half of 2024.

Also in March, LGES and Stellantis announced that the companies would invest more than $4.1 billion in a new electric vehiclebattery factoryin Windsor, Ontario, Canada .Among them, LGES will invest about 1.5 billion US dollars and will hold a 51% stake in the joint venture; Stellantis will hold a 49% stake.

LGESsaid at the time that if the two new plants were put into operation, LGES' total battery production capacity in North America would reach at least 200 GWh in 2025, enough for about 2.5 million electric vehicles.

Currently, LGES customers include Tesla, General Motors and Volkswagen.In the U.S., LGES is working with General Motors to build three plants in Ohio, Tennessee, and Michigan, and plans to expand its existing plant in Michigan.In addition, LGES has production sites in Korea, China, Poland, Canada and Indonesia.