LG Plans To Build The Largest Lithium-ion Battery Factory In Europe

- Oct 14, 2017-

With the European car manufacturers have to enter the electric vehicle industry, South Korea's LG Chemical (LG Chem) next year will be opened in Poland, Europe's largest lithium-ion battery factory.

LG plans to build the largest lithium-ion battery factory in Europe

On the one hand the battery prices continue to fall, on the other hand to reduce the pressure of emissions is growing, car manufacturers have turned to the production of electric vehicles. Volkswagen Group, Volvo, Daimler and BMW and other car manufacturers plan in the next few years to launch a series of new electric vehicles. Most of the batteries used by European carmakers are imported from China and South Korea because of the small battery production facilities in Europe. Although the Asian battery industry is developing early, large scale, but with the growth of European battery demand, Europeans want to develop their own battery industry, on the one hand can promote local employment, on the other hand can also increase profits.

According to the Polish State Department of Industry, LG Chemical plans to invest 5.9 billion zloty (about $ 1.63 billion) in the vicinity of Wroclaw, a city in southwestern Poland.

The Volkswagen announced that it plans to invest 20 billion euros (about $ 24 billion) to produce zero-emission vehicles by 2030 and plans to produce 3 million electric vehicles a year by 2025.

LG Chemical said in a statement on Thursday that it is expected to produce more than 100,000 vehicles in electric vehicles in Poland next year, employing 2,500 employees. LG Chemical is a subsidiary of LG Corp. (LG Corp.). LG Chemical did not disclose its potential customer information, but said its customers list will include top car manufacturers.

"Poland is one of the most competitive cities, so LG has chosen to come here to produce batteries to meet the needs of Europe and even the global automotive manufacturers." It is unclear what the battery of the plant is, Is completely produced in Poland, or will import some parts. But LG Chemical said its plant will build a research and development center and employ about 400 engineers from the fields of automation, electronics, chemistry and IT.

LG Chemical, a representative of the Polish branch, said the company will give priority to the purchase of lithium from the parent company of South Korea and other raw materials required for the production of batteries, but also hope that the local suppliers from Poland to purchase some raw materials. Battery costs are too high but are falling rapidly. According to Barclays (Barclays) analyst data show that the average cost of batteries in 2010 from 1,000 US dollars per kilowatts down to 2016 per kilowatt-hour around 227 US dollars.

In 2016, only 0.2% of the new passenger cars sold in Europe were pure electric vehicles. But the UK and France said they would start selling new gasoline and diesel vehicles from 2040 to reduce air pollution and stop using internal combustion engines. LG's chemical plant in Poland can not maintain the title of Europe's largest automotive battery factory for a long time.

In September this year, the Swiss engineering group ABB said it has joined the Northvolt project in Sweden to establish Europe's largest lithium-ion battery factory, the goal is to 2023, the annual output of 320GWh battery, higher than Tesla super factory set 90% of the target. Northvolt was founded by a former executive at Tesla, and Tesla also plans to build a super factory in Europe, but it does not specify the location.