Lithium Americas Corp (LAAC)

[Cory Groshek]

LG Chem to Open European Lithium-ion Battery Factory

Article: https://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/lg-chem-lithium-ion-battery-factory-europe/

To keep up with surging demand for electric cars, LG Chem (KRX:051910) will invest $1.63 billion to open the biggest lithium-ion battery factory in Europe.

The company said in a statement on Thursday (October 12) that starting in 2018 it plans to produce up to 100,000 batteries annually in Wroclaw, Poland. The decision comes as automakers continue to announce that they will electrify most of their models by the end of the decade.

Most recently, BMW (ETR:BMW), Mercedes-Benz, Audi (FWB:NUS) and Jaguar Land Rover all promised that their fleets will offer electric options for every model by no later than 2025. Collectively they are investing billions of dollars in a bid to catch up with Tesla (NASDAQ:TSLA).

“The company has chosen Poland as the most competitive location for production to satisfy the needs of European and global car producers,” said Chang-Beom Kang, vice president at LG Chem.

China currently leads in the production of electric vehicle batteries, but car manufacturers have been calling for Europe to start producing these batteries in order to remain competitive. LG Chem’s factory will make batteries suitable for electric cars produced by top car companies.

“We need production in Europe for vehicles of the future, or we put all Europe at risk,” Roberto Vavassori, president of the European Association of Automotive Suppliers, recently commented.

LG Chem said the raw materials for the batteries, including lithium, will at first be imported from its parent company in Korea, and then hopefully sourced from local suppliers.