LG Chem To Build Battery Factory In China In 2015
LG Chem signed a preliminary agreement to a build lithium-ion battery factory in China with two Chinese partners – Nanjing Jijin Technology Incubation Special Park Construction Development Co. and Nanjing New Industrial Investment Group Ltd. LG Chem will hold approximately 50% of the joint venture.
The factory should be ready before the end of 2015 and have annual capacity of batteries for more than 100,000 cars (no information on how big the packs will be on average).
Investment for the project will be hundreds of millions of dollars by 2020 and revenue in the first five years is expected to reach $1 billion.
Additionally, we’ve already heard that Korean battery maker secured its first volume customers for the batteries in China.
So, it seems LG Chem is expecting the Chinese EV market to explode in a good way, too.
Source: The Wall Street Journal