LG Energy Solution (LG ES) has announced its plan to build a lithium iron phosphate battery factory in the United States with an investment of $1.4 billion. The company intends to produce lithium iron phosphate batteries for stationary energy storage systems starting this year. LG ES will transform the existing electric vehicle battery production line at its Michigan plant to adapt it to the large – scale production of batteries for energy storage systems.
North America has long been considered a crucial market for LG ES’s battery energy storage business, and the company has established the energy storage system integrator LG ES Vertech. Through a debt guarantee, LG ES aims to secure a loan for investment to meet the growing demand for battery energy storage systems in North America. Although the announcement from the Korea Stock Exchange did not elaborate on the manufacturing strategy, a spokesperson for LG ES confirmed that the Michigan plant will produce lithium iron phosphate (LFP) batteries. According to the schedule, mass production is set to commence in 2025. This plan highlights LG ES’s intention to gain an early – mover advantage in the US domestic battery manufacturing sector, especially considering the contrasting trends of a slow – down in the general market and the rising demand in the North American battery energy storage market.