LG Chem invests 1.2 trillion won in the Nanjing battery plant
With an investment of 600 billion won for the expansion of the electric car factory 1 and small battery factory
LG Chem will invest 1.2 trillion won in a battery production capacity in Nanjing, China. This is a seperate endeavor from the number 2 battery plant to be built in Nanjing Binjjang Economic Development Zone as announced in October last year. The announcement is about expanding the two battery factories located in Xinjiang Economic Development Zone.
On September 9th, LG Chem announced that, at Hyun-moo Hotel in Nanjing, China, it had entered into a contract with Nanjing City to invest in a battery factory. The event was attended by Lan Shiaomin, mayor of Nanjing, Zhang Weojien, vice mayor of Nanjing, and Jonghyun Kim, head of operations (CEO) of LG Chem's battery business.
Through this investment agreement, LG Chem will invest 600 billion won each in EV battery 1 and small battery factories by 2020. It plans to preemptively respond to the surge in demand for cylindrical batteries used in electric vehicle (EV) pouch batteries, electric wheel (LEV, light electric vehicle), power tools, and wireless cleaners.
"With this expansion, we will lead the global market in areas such as EVs, small mobile vehicles, and power tools," said Kim Jong-hyun, head of LG Chem's battery business. “We will nurture the three Nanjing factories as a global export base beyond Asia. "
According to market researcher B3, the global demand for cylindrical batteries is expected to grow at an average annual rate of 27% from 2.3 billion in 2015 to 6 billion this year.