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South Korea’s LGES to Resume Arizona Battery Factory Plan With $5.6 Billion Investment

SEOUL (Reuters) – South Korea’s LG Energy Solution Ltd (LGES) said on Friday it would invest 7.2 trillion won ($5.58 billion) to build a battery factory in Arizona, reviving a project paused last year due to adverse economic conditions.

The world’s third-ranked electric vehicle battery maker, which supplies Tesla Inc, Lucid Group Inc and other automakers, in June said it was reassessing what was then a 1.7 trillion won investment plan due to “unprecedented” economic conditions, just three months the plan’s initial unveiling.

Friday’s announcement comes after LGES in January said it had been in “active discussion” with Tesla and electric vehicle startups to supply batteries from the proposed factory.

(Reporting by Heekyong Yang and Hyunsu Yim; Editing by Christopher Cushing)

Copyright 2023 Thomson Reuters.

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