LG opens electric vehicle battery plant in China
The company announced the completion of the plant on Tuesday. The three-story factory was built on 25,000 square meters (269,097 square feet) of land to make high-performance EVs that can run 320 kilometers (199 miles) on a single charge. The company aims to expand the plant’s capacity to 200,000 units by 2020, which will lead to 1.5 trillion won ($1.3 billion) in revenue and boost its global market share to 25 percent.
About 300 company executives and government officials including LG Group Chairman Koo Bon-moo and LG Chem’s Vice Chairman & CEO Park Jin-soo attended the event.
The company has already won contracts to produce 1 million EV batteries for some of China’s biggest automakers, including the country’s No. 1 Shanghai Automotive and No. 2 Dongfeng Commercial Vehicle.
The company expects to increase its global market share as it can now produce EV batteries in three different countries - Ochang in Korea, Michigan in the United States and in China, with a total production capacity of 180,000 units per year.
To respond to market demands quickly, the U.S. and China plants will focus on supplying their own countries, while the Ochang plant meet overall production volume.
The world’s EV market will grow from 3.7 trillion won ($3.26 billion) in 2013 to 20.7 trillion won in 2020, according to a global market research firm B3.
The company’s market strategies were led by LG Group’s Chairman Koo who took samples of rechargeable batteries on a business trip to the United Kingdom in 1991.
He also visited the Michigan plant’s groundbreaking ceremony and the completion ceremony for the Ochang plant in North Chungcheong.
BY KWON SANG-SOO [email@example.com]
More in Industry
Buffet restaurants adapt to pandemic by nixing the buffets
Sale of Doosan Infracore stake could be opportunity for Hyundai Heavy
Volvo XC60 ranks No. 1 for residual value in Encar study
Binggrae to scoop up ice cream competitor after FTC approves merger
LG accepting orders for rollable, $85K television