LG Chem Is Spending $1.63 Billion To Build A Battery Factory In Poland

- Sep 06, 2018-

According to foreign media reports, the polish state agency ARP recently confirmed that LG chem will open Europe's largest electric vehicle battery factory in Poland this year.The plant will employ 2,500 people and produce enough batteries for 100,000 battery packs, meaning it will be able to produce several thousand megawatt-hours a year.

According to ARP, LG chem plans to invest 5.9 billion zlotys ($1.63 billion) in a new plant near the city of wroclaw.Wroclaw is 190 kilometers (118 miles) from the German border, where Volkswagen is based.Volkswagen group plans to invest more than 20 billion euros ($24 billion) in zero-emission vehicles by 2030 and to make electric vehicles capable of producing 3 million a year by 2025.

There is no shortage of European carmakers willing to buy batteries from LG's new plants, including leading brands such as jaguar, Volkswagen group, renault-nissan and Daimler.The expected demand for electric batteries, particularly in Europe, suggests that LG chem's new plant, the "largest in Europe", will not last long, with annual capacity of 32 gigawatts by 2023 if the NorthVolt battery plant project in Sweden is funded and production on schedule.

When asked about the source of lithium and other raw materials, a representative of LG chem's local branch said it would first import the raw materials from its Korean parent company and then expect to buy them from polish suppliers.According to Chang-Beom Kang, vice President of LG chemical, the company chose Poland as its most competitive manufacturing location to meet the needs of European and global auto makers.