Tesla battery supplier LG Energy Solutions announces $1.4B battery factory in Arizona
Tesla battery supplier LG Energy Solutions announced that it will build a $1.4 billion battery production facility in Arizona as demand for electric vehicles skyrockets across the United States.
LG Energy Solutions said it will build a $1.4 billion plant to meet demand from “major startups” and other North American companies as consumer sentiment begins to shift toward sustainable vehicles. The company believes that the factory is expected to be operational by 2024.
The Arizona plant will be LGES’s first US factory to manufacture cylindrical electric vehicle cells commonly used by automakers such as Tesla and Lucid, which have an automotive production facility in Arizona. LGES is expected to break ground at the plant in the second quarter of 2022, with mass production expected to begin at 11 gigawatt-hours of capacity in 2024, LGES said in a statement.
“With the establishment of our new” Arizona The plant, LG Energy Solutions, aims to provide unparalleled consumer value in the rapidly growing cylindrical battery market.” yangsu kwonsaid the CEO of LG Energy Solutions. “LGES will provide the most reliable, competitive and advanced products that will emerge as the best business partner for our customers.”
Tesla and Lucid could be among the potential customers to benefit from the plant. Additionally, Protera and Philip Morris, makers of hot-tobacco sticks, may be other non-automotive companies receiving cells from the plant, Reuters said. However, these companies have not confirmed any link with the plant.
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LGES may expand the plant’s potential production capacity in the future. According to the company, the facility will use state-of-the-art technology and operate as a “smart factory”. Using remote support, manufacturing intelligence, logistics automation and much more, LGES plans to use the latest production technology, along with its expertise in mass production of batteries to “meet the demands of consumers in a stable manner.” and to secure the company’s leadership in North American batteries”. Market.”
“The Arizona factory may add more production capacity in the future as we see increasing demand for cylindrical batteries from a variety of customers, including automakers and power tool manufacturers,” said an LGES official.
Automotive CEOs have called for increased availability for SAIL as more companies embrace the transition to EVs. Tesla CEO Elon Musk said earlier this week that cell availability would be a “limiting factor” for the next two to three years. In previous earnings calls for the company, Musk and other Tesla executives have said that the lack of cells is the real impediment to production. Although Tesla has increased its annual production by about 1 million cars a year, the company has delayed several projects, including the Cybertruck, as cell availability continues to limit the automaker’s capacity for new projects.
Musk confirmed that Tesla will not launch any new products in 2022, effectively delaying several new vehicles until 2023.
LGES raised more than $10 billion in an IPO in Korea in January, and announced several other battery ventures with other EV makers such as General Motors and Stellantis.
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