LG Energy solution announced plans to invest 4 trillion won or about $3.1 billion in expanding its electric vehicle battery plant in Ochang, South Korea, as reported by Teslarati.
Purpose of the investment
LG’s Ochang plant is aimed at supporting the company’s research and development efforts and production operations this year until 2026.
Essentially, it would develop a diverse product line that would include pouch-type and cylindrical batteries with a 4680-cell form factor. Notably, these products will probably be supplied to its major client Tesla.
“We plan to set up a diversified product portfolio including pouch-type and cylindrical batteries to respond to customer needs in a timely manner and differentiate production capabilities based on a ‘smart’ factory.”
LG Energy Solution spokesperson
The EV battery factory is projected to generate 1,800 jobs, per the report.
A sudden shift of interest
The South Korean battery manufacturer has previously expressed intentions to produce 4680 batteries in its Ochang Plant. It also announced an investment of 580 billion won (about $450 million) in June to construct a production line for 4680 cylindrical battery cells at its second plant in Ochang.
All that considered, LG’s latest announcement, including cylindrical batteries in its product line, indicates that the company has somehow changed its focus from its original plans.
Reports suggest that the new assembly line will be able to produce 9GWh. Additionally, LG Energy Solution said at the time that it would increase the output of 2170 cells at its first Ochang plant by 4GWh.
Remarkably, LG Energy Solution pledged to boost the local economy by acquiring manufacturing supplies and tools from local companies. It will also urge their involvement in the investment’s implementation.
