Korea’s LG Energy Solution to invest $448 mn in “mother line” at Ochang plant

LG Energy Solution Ltd. plant in Ochang, North Chungcheong Province [Photo provided by LGES]

LG Energy Solution Ltd. (LGES), the pure-play vehicle battery maker under South Korea’s LG Group, plans to invest 600 billion won ($448.4 million) to build a “mother line” in its energy plant in Ochang, North Chungcheong Province, a move that will help accelerate the production of next-generation pouch-type long-cell batteries.

LGES said Tuesday that it will spend 600 billion won in the energy plant to establish a facility that will be responsible for the trial production and mass production test of its pouch-type long-cell batteries.

“We plan to build a ‘mother line’ through this investment,” said an unnamed official from LGES. “It is different from a pilot line as it not only carries out testing but also verifies the stages for mass production of products.”

A mother line is an enhanced and improved facility of a pilot line responsible for the production of trial products. It covers not only production but also verification before the commercial stage. LGES will aim to complete the construction of the new mother line in December 2024.

The latest move to boost the Ochang energy plant reflects an idea proposed by Maeil Business Newspaper in its Vision Korea event last month. The newspaper raised the idea of establishing a mother factory in Korea to enhance the competitiveness of the local manufacturing sector.

The new line will be manufacturing pouch-type long-cell batteries, which LGES supplied to General Motors Co. for its Hummer EV pickup and sports utility vehicle models. The battery helps maximize the capacity and strength of pouch-type batteries that are easy to produce according to the capacity and size requested by original equipment manufacturers (OEMs).

“LGES is receiving many requests for prototypes of LGES pouch long-cell batteries,” said an unnamed industry official.

LGES, in the meantime, announced plans earlier to invest 4 trillion won to nurture its Ochang complex as a mother factory for its battery production plans operating around the world, including North America, Europe, and Asia.

LGES Vice Chairman Kwon Young-soo said in a message to the employees last month that the company will nurture the Ochang complex as a mother factory that sets global standards for developing and manufacturing next-generation batteries. Kwon also vowed to spare no expenses.

In June last year, LGES invested 580 billion won to produce a next-generation cylindrical battery with a 4680 cell form factor in Ochang.

LGES is also nurturing the Ochang complex as a cutting-edge technology center that incorporates artificial intelligence (AI). The factory monitoring control center (FMCC) in the complex is equipped with an AI-based deep learning system to manage the operation status of factories around the world in real time.

“The Ochang complex will act as the control tower as it will be the first factory to deploy new technologies among other factories around the world,” Kwon said.