LG Energy Solution will begin producing lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in the United States starting in the second half of this year.
On the 18th, LG Energy Solution announced that it is proceeding with a debt guarantee of 2.319 trillion won for investment in the ESS production facility at its factory in Holland, Michigan. The company noted that it plans to utilize the expansion site at the Michigan Holland plant for the ESS line.
LG Energy Solution plans to complete preparations for operation in the first half of this year and ramp up mass production starting in the second half. This strategy is aimed at actively responding to the rapidly growing demand in the North American ESS market, which is intertwined with establishing artificial intelligence (AI) data centers and expanding renewable energy generation.
On the same day, LG Energy Solution also decided on a debt guarantee of 3.6027 trillion won for acquiring the third plant of the joint venture (JV) Ultium Cells with General Motors (GM). This debt guarantee pertains to the expected acquisition cost upon signing the acquisition agreement for the Ultium Cells third plant in Lansing, Michigan.
LG Energy Solution stated that it plans to utilize the acquired Ultium Cells third plant in Lansing, Michigan, to respond to the demand for electric vehicles in North America. It will complete the main contract as soon as it finalizes the specific contract terms and payment details.