South Korean tech giant LGES is eyeing a significant improvement in its electric vehicle battery production capacity within the United States.
LGES has announced plans to erect new battery factories in several US states, including Arizona, Georgia, Michigan, and Tennessee.
The company apparently expects this strategic move to dramatically expand its battery production capacity in the country by over 55 times by 2027.
Growing demand for renewable energy drives LGES’ strategic move in the US
The company’s ambitious expansion plans reflect the growing need for grid stabilization through the renewable energy transition.
For context, the surge in battery-powered vehicles caused concerns regarding their heavy reliance on the electric grid.
In effect, large-scale batteries are becoming essential components of the energy landscape. Texas officials are even considering the technology’s deployment to manage the state’s power grid during extreme weather conditions and strained power infrastructure.
EV-a2z previously reported that LGES would invest $5.56 billion to develop its battery factory in Arizona.
Moreover, the company’s US battery cathode plant will also receive more than $3 billion in investment.
Apart from these two plants, LGES will also build new battery factories in Georgia and Michigan.
Federal regulators forecast solar power to dominate new-gen capacity
Notably, natural gas-fired generation has grown in the first four months of 2023 to an additional about 4,500 MW. Nonetheless, federal regulators anticipate that solar power will dominate new generation capacity in the coming years.
This shift towards renewable energy aligns with LGES’ commitment to sustainable solutions and the industry-wide trend of reducing emissions.
Global shipping industry could cut emissions in half by 2030
Regarding emissions reduction, recent research suggests that the global shipping industry has the potential to halve its emissions by 2030.
The study proposes the establishment of a carbon levy to incentivize investments in emission-reducing technologies. Such measures could play a vital role in mitigating the environmental impact of the shipping sector while maintaining international trade.
See Also:
- LGES confirms plans to invest USD 5.56 billion to construct its LFP battery plants in Arizona
- LG Energy Solution: EV battery market is booming as orders increase in US
- LG Chem to spend over $3 billion to construct a battery cathode plant in the US
- Honda, LG announced US joint venture to build 4.4 billion EV Battery Plant
- Nevada imposes significant incentives for zero-emission trucks and buses
LGES gears up for a substantial increase in its US battery production capacity, aligning with the growing demand for storage solutions and the ongoing transition towards renewable energy sources.
The company’s expansion plans reflect its commitment to sustainability and innovation in the evolving energy landscape.
