LG Energy Solution Halts Arizona ESS Battery Plant Construction Amid Market Adjustments
2024-07-01 17:07

LG Energy Solution has halted the construction of its energy storage system (ESS) battery production line at its Arizona plant in the United States. Seven months ago, the company broke ground on this project in response to a stagnating electric vehicle market.

On June 28, LG Energy Solution stated that it is efficiently and flexibly adjusting its planned investments according to market conditions and focusing on optimizing its operations. The company announced that the construction of the Arizona ESS battery facility has been temporarily suspended.

In September 2023, LG Energy Solution unveiled its ESS business strategy for the United States, considering expanding production in the country with the goal of doubling global ESS product sales within five years.

Seungse Chang, head of LG Energy Solution's ESS business, stated that by 2030, North America will account for up to 70% of LG Energy Solution's ESS sales.

Additionally, in April this year, LG Energy Solution announced that its $5.5 billion battery plant in Queen Creek, Arizona, has begun construction and is expected to be operational by 2026. The new plant plans to produce 46-series cylindrical batteries for electric vehicles and lithium iron phosphate (LFP) pouch batteries for energy storage systems, with an expected annual production capacity of 36GWh and 17GWh, respectively.

It is reported that this is LG Energy Solution's second independent plant in the United States and the first manufacturing plant in the country to produce cylindrical batteries. LG Energy Solution currently has an independent battery plant in Holland, Michigan, which was built ten years ago.

Source:Korea Central Daily

Tags:battery , energy storage