LG Energy Solution (LGES) is reorienting its operations at its new $5.5 billion plant in Arizona, pausing construction of its energy storage system (ESS) battery production to concentrate on manufacturing 46-series cylindrical cells. This strategic pivot reflects the heightened demand in the electric vehicle (EV) sector, particularly for Tesla’s groundbreaking 4680 batteries.
“We are adjusting the pace of planned investment execution efficiently and flexibly according to market conditions, and focusing on optimizing our operations. Temporarily suspending the construction of the Arizona ESS battery facility is part of such efforts,” commented LGES.
LGES aims to commence production of 4680 cells at its Ochang Factory in South Korea by August 2024, with an initial capacity of 8 GWh annually. This initiative positions LGES to supply 46-series cells to Tesla and other major automakers globally, catering to the burgeoning EV market’s escalating demands.
