LG Energy Solution said on Monday it will spend 4 trillion won, or about $3.07 billion, to expand its electric vehicle (EV) battery production in South Korea until 2026.
The funds will be used to expand and build new battery plants in the Ochang Industrial Zone in Cheonju, the capital of North Chungcheong Province, southeast of Seoul. LG Energy Solution already operates a cylindrical battery plant in Ochang.
Additional production lines to be built there will introduce the latest smart factory solutions, including logistics automation, remote control and smart manufacturing, the South Korean battery maker said.
The North Chungcheong Province and Jeonju local governments said they would provide financial and administrative support to LG Energy Solution to implement the plan. The move by the company is expected to create around 1,800 jobs.
LG Energy Solutions is spending billions of dollars on its own and through joint ventures with auto giants to expand its electric vehicle battery production globally.
Last year, it announced a joint investment of 2.3 billion US dollars with General Motors to build a new battery plant in the state of Ohio, and production began in August. The pair’s joint venture, Ultium Cells, plans to build four battery manufacturing plants in the United States.
LG Energy Solution is also planning to build a battery plant in Ontario, Canada with Stellantis. The couple said they would spend $4.1 billion on the project.
The South Korean battery maker is partnering with Japan’s Honda, which plans to spend $4.4 billion to build a battery plant in the United States. It is also building a battery factory in Indonesia in cooperation with South Korea’s Hyundai Motor Company.
Last month, LG Energy Solution’s parent company, LG Chem, said it would spend $3.2 billion to build a plant in Tennessee to make cathodes used to make electric power batteries.