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LG is looking for land to build a battery factory in Europe

Within the ranking of the largest battery manufacturers in the world, LG ranks second, right between CATL and Panasonic. The South Koreans want to aspire to first place and for this they need to scale production to a higher level. With strategic plans that contemplate an increase in production, LG is looking for land to build its first battery factory in Europea, something that would allow it to be closer to many of its trading partners from the old continent.

At the moment it has not been specified or filtered where the ideal land could be located. Obviously, LG seeks a strategically convenient location, which brings them closer to producing countries and of great importance such as France or Germany. However, nothing has come out about it. The search is underway, and soon we should know what the selected place has been. Let us remember that Europe is increasingly attracting a larger battery production infrastructure. An example is the important strategy taken by the Volkswagen Group.

This move will allow LG Energy Solutions to offer batteries closer to many of the manufacturers with which the brand collaborates. Its partners include illustrious names such as Stellantis, Ford or Volkswagen, as well as industry giants such as Tesla. The entire strategy is encompassed within a new commercial course on a global scale. The Koreans want to expand their presence throughout the world while increasing production in the centers they have opened on different continents, Asia being the central axis of everything.

LG Energy Solution hopes to overtake CATL and position itself as No. 1 in the world
The new LFP batteries will allow LG to fight for the first place in the world of production

However, given the recent hiccups in China with health policy regarding the COVID-19 pandemic, LG is going to focus on other scenarios, such as the plant that it has built together with Hyundai in Indonesia. The temporary closures suffered during the second quarter in the land of the rising sun have wreaked havoc on quarterly balance sheets, to which must be added the problems with supplies and exports.

Europe will not be the only scenario that gains weight in LG’s commercial expansion. The United States will gain prominence with the opening of a cell factory in Arizona where LG expects to invest more than 1,290 million dollars. Although the plans indicated that construction should already be underway, extreme inflation, added to the increase in logistics and construction costs, have delayed the start of operations until last June.

In terms of battery technologies, LG expects to start marketing its new lithium ferrophosphate (LFP) batteries made in China from next year. By 2024, he hopes that the Michigan plant will be able to add an additional production line to manufacture the same batteries and thus be able to meet the growing demand in North America, where the Koreans have such important partners as General Motors and Ford, in addition, of course. is, from Tesla.

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