LG Energy Solution invests $3B in US battery manufacturing expansion
LG Energy Solution invests $3B in US battery manufacturing ... Utility Dive
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Battery Maker LG Energy Solution to Invest $3 Billion in Michigan Plant for Toyota Partnership
Overview
- Battery maker LG Energy Solution has announced a $3 billion investment in its Holland, Michigan battery manufacturing plant as part of a new lithium battery supply deal with Toyota.
- The batteries produced at LG Energy Solution’s site will be sent to Toyota’s largest vehicle manufacturing plant in Georgetown, Kentucky, and will be used in the automaker’s new, North American-assembled battery-powered electric vehicle (EV).
- This deal is the battery maker’s largest supply agreement outside of a joint venture and is set to begin in 2025, with LG Energy Solution planning an annual battery production capacity of 20 gigawatts.
Analysis
The battery supply deal aligns with Toyota’s goal to produce 3.5 million battery EVs per year by 2030. To support this objective, the automaker has announced plans to triple its annual EV production target to 600,000 vehicles in 2025, as it aims to compete against global EV manufacturers like Tesla and China-based BYD. Additionally, Toyota is updating and streamlining its EV manufacturing process to bring down production costs, which has been a hindrance for many automakers in their EV growth plans.
In September, Toyota’s North American segment sold 64,298 EVs, marking an 81.5% year-over-year increase. On the other hand, LG Energy Solution has emerged as a major player in U.S. battery manufacturing over the past year. The company has secured lucrative partnerships with some of the world’s largest automakers and has invested billions of dollars in battery factories across the U.S.
LG Energy Solution is partnering with Hyundai to build a $6.3 billion battery manufacturing campus in Savannah, Georgia. It is also collaborating with Honda to establish a $4.4 billion battery factory in Fayette County, Ohio. Furthermore, LG Energy Solution and GM’s joint venture Ultium are constructing three battery production sites across Ohio, Tennessee, and Michigan. Additionally, LG Energy Solution is investing $5.5 billion in a Queen Creek, Arizona complex where it will produce cylindrical EV batteries and lithium iron phosphate batteries.
“With our 30 years of experience in lithium-ion batteries, we will provide innovative power solutions to support Toyota’s push further into battery electric vehicles,” said Young Soo Kwon, CEO of LG Energy Solution. “The agreement also presents another big opportunity for us to strengthen our production capacity in North America, thereby bringing more real-life, large-scale progress toward electrification in the region.”
SDGs, Targets, and Indicators
1. SDGs Addressed in the Article:
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
2. Specific Targets Based on the Article:
- SDG 7.2: Increase substantially the share of renewable energy in the global energy mix
- SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
- SDG 11.2: Provide access to safe, affordable, accessible, and sustainable transport systems for all
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships
3. Indicators Mentioned or Implied in the Article:
- Investment in battery manufacturing plants and capacity (e.g., $3 billion investment, annual battery production capacity of 20 gigawatts)
- Number of battery EVs produced and sold (e.g., Toyota’s target of producing 3.5 million battery EVs a year by 2030, Toyota’s North American segment sold 64,298 EVs in September)
- Partnerships and collaborations with automakers (e.g., LG Energy Solution partnering with Toyota, Hyundai, Honda, and GM’s joint venture Ultium)
- Investment in sustainable infrastructure (e.g., LG Energy Solution investing in battery factories across the U.S., building battery manufacturing campuses and production sites)
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase substantially the share of renewable energy in the global energy mix | Investment in battery manufacturing plants and capacity |
| SDG 9: Industry, Innovation, and Infrastructure | 9.4: Upgrade infrastructure and retrofit industries to make them sustainable | Investment in sustainable infrastructure |
| 9.4: Provide access to safe, affordable, accessible, and sustainable transport systems for all | Number of battery EVs produced and sold | |
| SDG 11: Sustainable Cities and Communities | 11.2: Provide access to safe, affordable, accessible, and sustainable transport systems for all | Number of battery EVs produced and sold |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning | Investment in battery manufacturing plants and capacity |
| SDG 17: Partnerships for the Goals | 17.17: Encourage and promote effective public, public-private, and civil society partnerships | Partnerships and collaborations with automakers |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: utilitydive.com
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