LGES to invest $3.07 bn to ramp up cylindrical battery output in Korea

LGES cylindrical battery [Photo provided by LGES]

South Korean battery maker LG Energy Solution (LGES) will invest 4 trillion won ($3.07 billion) in ramping up cylindrical battery production at home in a pre-emptive move to respond better to the anticipated growth in demand for cylindrical batteries, which are touted as a game changer in the EV industry.

The company on Monday announced that it will invest 4 trillion won in expanding cylindrical battery output at its Ochang plant in Cheongju over the next three years.

The investment plan, which also includes the creation of 1,800 new jobs, is an upgraded commitment that encompasses the company’s earlier announced facility expansion plan worth 730 billion won in response to growing demand for cylindrical batteries from electric vehicle makers around the world.

Some 580 billion won is allocated for production lines for the 4680 cylindrical battery with a 46-millimeter diameter and 80-millimeter length, and 150 billion won for the 2170 battery.

The 4680-battery type once introduced by Tesla CEO Elon Musk at Battery Day 2020 is a next-generation battery that is drawing attention from other EV makers. Compared to the existing 2170 battery, the new type is five times higher in energy density and six times higher in output, capable of increasing the milestone by 16 percent.

LGES Ochang plant [Photo provided by LGES]

The 4680-battery line is expected to serve as a mother factory for the production of all cylindrical batteries from LGES. Starting the initial production of the 4680 battery in Korea instead of the Unites States is interpreted as the company’s intention to make the Ochang plant its key R&D base, which will determine future partnerships with Tesla.

The Korean company will also introduce smart factory features such as remote support, intellectualization of manufacturing and logistic automation to maximize productivity at the new assembly lines.

LGES continues large-scale investments such as factory monitoring control center (FMCC) systems at its Ochang plant. The control center is designed to identify and immediately address any problems in the manufacturing process of plants located beyond Korea. The company is producing 2170-type batteries on a large scale in Nanjing, China. Batteries produced here are supplied to Tesla and other global EV makers.