LG Energy Solution is investing $5.5 billion into a battery manufacturing plant–what it calls “the largest battery-making investment in the U.S. to date,” according to Green Car Reports.
The plant will have two different battery manufacturing processes within it: one part is focused on “2170-format cylindrical battery cells for EVs.” The other will be for “pouch-type cells for energy storage systems,” and will use “a lithium iron phosphate (LFP) chemistry.”
LG is planning to start construction later this year, with the production of EV battery cells starting in 2025. Energy storage cells are planned to start production a year later.
The company stated that the Inflation Reduction Act’s tax credit requirement for North American-sourced battery materials is part of what made them decide on Arizona for the new factory.
When Panasonic unveiled plans for a new battery plant nearby Kansas City, the company advertised it as the largest investment in a battery production facility–but with LG’s new Arizona factory, they are coming out ahead of Panasonic’s $4 billion facility.
