LG Energy Solution powers up newest factory in North America
The company's Michigan facility will focus on batteries for energy storage systems and EVs to meet growing U.S. grid demand.
From left: Hong Sang-woo, consul general of the Republic of Korea in Chicago; Michigan Gov. Gretchen Whitmer; Doug Burgum, U.S. secretary of the interior; LGES CEO Kim Dong-myung; and LGES Michigan President Choi Dae-sik pose for a photo after an opening ceremony for the company's battery plant in Michigan on Aug. 18.
YONHAP
LG Energy Solution (LGES), Korea's leading battery maker, said Wednesday it has started operations at its seventh battery plant in North America to meet growing demand for energy storage batteries.
LG Energy Solution Michigan-Lansing will manufacture batteries for both energy storage systems (ESS) and EVs, with the company aiming to secure more than 350 gigawatt-hours (GWh) of annual output when the facility reaches full-scale production capacity, LGES said in a press release.
As U.S. power demand grows, ESS batteries produced at the Lansing facility will help utilities store and dispatch energy more reliably across the power grid, it said.
“Lansing will produce advanced batteries that support not only the future of mobility, but also America's growing energy infrastructure and digital economy,” LGES Chief Executive Kim Dong-myung said in the release.
U.S. Interior Secretary Doug Burgum said domestic battery production is foundational to America's energy future, reducing dependence on foreign adversaries, creating well-paying American jobs and advancing the American Energy Dominance Agenda.
“Michigan is uniquely positioned to help lead this effort with its skilled work force, manufacturing expertise and the industrial capabilities needed to strengthen America's domestic battery supply chain,” he said.
With the addition of the Lansing plant, the company now has seven battery plants in North America — six in the United States and one in Canada. Five of them produce batteries for both ESS and electric vehicles, while the other two manufacture EV batteries only.
Amid growing demand for ESS batteries, the company plans to have more than 50 GWh of lithium iron phosphate cell production capacity in North America by December at three wholly owned plants: LG Energy Solution Michigan-Lansing; LG Energy Solution Michigan-Holland and NextStar Energy in Ontario, Canada; and two joint venture facilities — one with Honda in Ohio and the other with General Motors in Tennessee.
Battery companies have stepped up efforts to secure more ESS battery deals to offset lackluster demand for EV batteries amid a prolonged downturn in the EV market.
The U.S. ESS market is expected to grow fourfold by 2031, reaching 499 GWh in capacity, according to market research firm Wood Mackenzie.
Yonhap
