LGES, A Supplier To Tesla, Plans To Increase Investment In Arizona Battery Plant To $5.5 Billion, Four Times The Current Amount.

Republished By Plato

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LG Energy Solution (LGES), a South Korean battery maker and supplier to Tesla, has announced plans to increase its investment in a battery plant in Arizona to $5.5 billion, four times the current amount. The move comes as demand for electric vehicles (EVs) continues to rise, and as automakers seek to secure a reliable supply of batteries.

The plant, which is located in the city of Goodyear, is expected to produce batteries for electric vehicles, as well as energy storage systems for homes and businesses. The increased investment will allow LGES to expand the plant’s production capacity and create more jobs in the region.

According to LGES, the expanded plant will be capable of producing enough batteries to power 1 million electric vehicles per year. The company also plans to use the facility to develop new battery technologies, including solid-state batteries, which are seen as a potential game-changer for the EV industry.

The decision to increase investment in the Arizona plant comes as part of LGES’s broader strategy to expand its global battery production capacity. The company has already announced plans to invest $4.5 billion in a new battery plant in Indonesia, which is expected to begin production in 2023.

The move also reflects the growing importance of the US market for EVs and batteries. President Joe Biden has set a goal of making the US a leader in EV production and sales, and has proposed a $174 billion investment in EV infrastructure and incentives as part of his infrastructure plan.

For Tesla, the increased investment by LGES is good news, as it will help to ensure a reliable supply of batteries for its electric vehicles. Tesla has been working to expand its own battery production capacity, but has faced challenges in securing enough raw materials to meet demand.

Overall, the increased investment by LGES in the Arizona battery plant is a positive development for the EV industry, as it will help to accelerate the transition to electric vehicles and support the growth of renewable energy. It also highlights the importance of partnerships between automakers and battery suppliers in driving innovation and expanding production capacity.