LG Energy Solution (LGES), a supplier to electric car makers Tesla and Lucid, said it plans to invest 1.3 billion euros to build a battery plant in Arizona by 2024.
This was done in order to meet the demands of “leading startups” and other North American customers.
It will be the first US factory to make cylindrical cells, the type of battery already used in Tesla and Lucid vehicles, LGES said.
Construction will begin in the second quarter of 2022, with mass production set to begin in 2024 with a production capacity of 11 gigawatt hours, LGES said in a statement.
Previously, Reuters reported that potential customers would include EV makers Tesla, Lucid and Proterra as well as Philip Morris PM.N. The report cites people familiar with the matter.
LGES said in a statement that it plans to consider securing additional production capacity at the Arizona plant in the future.
“The Arizona plant may add further production capacity in the future as we see increasing demand for cylindrical batteries from a wide range of customers, including automakers and power tool makers,” said an official at LGES.
Tesla Chief Executive Officer Elon Musk said battery production would be a “limiting factor” for vehicle production in two to three years. He has asked suppliers to increase production, while Tesla is starting to build its own cells.
LGES, raised more than US$10 billion in an initial public offering in Korea in January. LGES has previously announced a series of battery joint ventures with GM and Stellantis in the United States and Canada.
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