It has a planned capacity of 40 GWh/year of lithium ion cells by end of 2025:
A key component of the revised electric vehicle tax credit is a requirement for an ever-increasing amount of domestic content in those EVs' battery packs. Automakers and battery manufacturers were already in the process of setting up US manufacturing to be closer to locally built EVs, and that trend has accelerated ever since.
At the end of August, Honda and LG Energy Solutions announced that they were forming a joint venture to build a US battery factory. And on Tuesday, the pair announced that the factory would be in Fayette County, Ohio, about 40 miles (64.4 km) southwest of Columbus.
Honda and LG will spend $3.5 billion on the new plant after regulatory approval. Assuming that happens relatively rapidly, the plan is to begin construction in 2023 and finish the building work by the end of 2024. Honda said that by the end of the following year, the factory should have an annual capacity of 40 GWh. Honda and LG also said the factory should create 2,200 jobs in the area.
[...] The cells that the plant produces will be used in Honda's new "e:Architecture" platform. The first EVs to use e:Architecture should go on sale in the US in 2026 and will be built in North America.
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Battery maker LG Energy Solution's second-quarter profit dropped 58% year-on-year to 195.3 billion won ($141m), the company said on Monday (8 July), as demand for electric vehicles (EVs) slows:
The South Korean-based battery company also saw its revenue drop 30% to 6.2 trillion won ($4.4bn).
The company also faces increased competition from its Chinese rivals, which has weakened its share of the market.
Car manufacturers have been calling for battery companies to create cheaper cells to lower EV prices, which has applied pressure to companies like LG Energy.
This led to LG Energy's chief technology officer, Kim Je-Young, stating that the company would commercialise dry-coating technology by 2028, a technology which makes battery manufacturing cheaper and more efficient.
Battery maker SK On declares 'emergency' as EV sales disappoint. Supplier to Ford and Volkswagen may have to be rescued by its South Korean parent as losses mount:
A leading South Korean producer of electric vehicle batteries has declared itself in crisis as its customers struggle with disappointing EV sales in Europe and the US.
SK On, the world's fourth-largest EV battery maker behind Chinese giants CATL and BYD and South Korean rival LG Energy Solution, has recorded losses for 10 consecutive quarters since being spun off by its parent company in 2021. Its net debt has increased more than fivefold, from Won2.9tn ($2.1bn) to Won15.6tn over the same period, as western EV sales have fallen far short of its expectations.
With losses snowballing, chief executive Lee Seok-hee announced a series of cost-cutting and working practice measures last Monday, describing them as a state of "emergency management".
[...] SK On has made a series of aggressive investments in the US and Europe in recent years, betting on a widely predicted boom in demand for EVs. However, it has since announced extended lay-offs for workers at its plant in the US state of Georgia and delayed launching a second plant in Kentucky, a joint venture with its principal US customer Ford.
Previously:
- LG Energy Solution to Spend $3 Billion to Expand EV Battery Production in South Korea
- Honda and LG are Investing $3.5 Billion in New Ohio Battery Factory
- Ford Motor Company is Planning a Big EV Future
LG Energy Solution said on Monday that it will spend 4 trillion won, or approximately $3.07 billion, up until 2026 to expand its electric vehicle (EV) battery production in South Korea:
The funds will go into expanding and building new battery production facilities at the Ochang industrial zone located in Cheongju, the capital city of North Chungcheong Province southeast of Seoul. LG Energy Solution already operates a cylindrical battery production facility at Ochang.
Additional production lines to be built there will adopt the latest smart factory solutions such as logistics automation, remote support, and intelligent manufacturing, the South Korean battery maker said.
The local governments of North Chungcheong Province and Cheongju said they will provide financial and administrative support to LG Energy Solution for the plan. The move by the company is expected to create around 1,800 new jobs.
Previously: Honda and LG are Investing $3.5 Billion in New Ohio Battery Factory
(Score: 0) by Anonymous Coward on Thursday October 13 2022, @11:26AM
Here's a few 40GWh equivalents: https://www.acc-emotion.com/stories/our-gigafactories-will-be-producing-40-gwh-each-2030-how-much-power-does-represent [acc-emotion.com]
Not as enlightening as the total perspective vortex, but ya gotta start somewhere.
(Score: 3, Interesting) by Thexalon on Thursday October 13 2022, @11:41AM (1 child)
In addition to batteries, they're also going to be making computer chips [intel.com].
I'm not a huge fan of Ohio's state government (I live there, so I have to deal with them), but I'll freely admit they're doing something interesting recruiting these kinds of businesses into the area.
"Think of how stupid the average person is. Then realize half of 'em are stupider than that." - George Carlin
(Score: 3, Informative) by bmimatt on Thursday October 13 2022, @06:52PM
"Something interesting" is most likely a set of massive tax breaks and other concessions.