LG Chem To Build A Battery Plant In Europe

OCT 3 2015 BY MARK KANE 21

LG Chem is hard at work

LG Chem lithium-ion battery cell

LG Chem intends to build a lithium-ion battery plant in Europe. Until now, the European market has been supplied by LG Chem’s Korean factory in Ochang, North Chungcheong Province (claimed production capacity at 200,000 “batteries“).

LG Chem has a factory in the US in Holland, Michigan with capacity of up to 50,000 batteries and recently was increasing its workforce there.

A third plant is under construction in China for more than 100,000 cars.

In Europe, LG Chem’s largest customer currently is Renault, but there are others willing to go with LG Chem like Audi and Daimler.

“The company on Wednesday said that it decided to build an electric car battery plant with an annual production capacity of 50,000 batteries in Europe and is looking for a suitable site.

The most likely location is in Wroclaw in Poland, where LG Electronics, LG Display and LG Innotek have their branches.

A company spokesman said, “A factory in Europe will help us reduce logistics costs and increase supplies to the European market.”

Source: The Chosun Ilbo

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21 Comments on "LG Chem To Build A Battery Plant In Europe"

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…And the battery-production capacities required for making a lot more EVs (not to mention, longer-range and larger-vehicle EVs) are starting to get off the ground…

This is more great battery news. GM just said they are paying 150$/kwh from LG. That’s way lower than most had guessed.

It shows that there is huge disruptive peril here for the oil industry car makers.

Will they cling to the old business model and ride it into the grave like so many before them???

I wonder why they announced that? Could it be that GM is actually getting them cheaper?

You could almost believe that OPEC are keeping oil at such a low price not to force the frackers out of business, nor to put Putin under pressure to tow a more reasonable political line but actually to cause a second ‘death of the EV’. Unfortunately, the VW (and all the others yet to come, especially Mercedes, Ford and GM) fiasco has probably put the kibosh on those plans. MW

I really think electric cars coming into existence and being on the market is what is driving oil prices down. In that if you look at Who Killed the Electric car and at keep track of gas prices there was a colossal gas price rise that started a year after the EV1 was killed.

But now OPEC and the major gas companies are very worried in that you now have solar power and EV’s under growing massive growth.

It’s hardly a surprise that LG Chem will be building a new battery factory in Europe… and likely several other places around the world, given the number of customers that want LG’s new cheaper li-ion cells!

This is fantastic news. It was slow getting off the ground, but anyone who has looked at the curves for price and capacity know that it really is an stoppable force. There simply won’t be a business case for not going electric at a certain point in the near future, since it will be cheaper, faster and better.

Cheaper 0nly in $$ Cost I hope….

This is good news but still very limited battery supplies. I expect to hear LG announce new factories on a monthly basis going forward.

And the EV explosion begins!

The planned is capacity is disappointing, though.
Tesla Gigafactory is intended for up to 500.000 Tesla cars with 80 kWh each, this LG plant is for 50.000 batteries (5 to 30 kWh ?), so it is just a few percent of the Gigafactory.

500k Tesla vs.

200k in Korea
+50k in the US
+>100k in China (under construction)
+50k somewhere in Europe in the future

-> I think it will be much more than a few percent.
And don’t forget: E.g. the Renault Zoe only needs a 22kWh battery to become a quite well selling EV…

notting

Question is, how much capacity LG “battery” represent. Its one thing, if its 22KWh and anothr, if its 80KWh.

LG Chem is supplying at least 9 different car manufacturers.

400k battery packs / 9 buyers = Other EV manufacturers are going to be constrained by lack of enough batteries. An average of 44k vs. Tesla’s 500k.

Gigafactory isn’t even half financed yet. Panasonic is still holding back any more investments and it will be delayed and delayed.

Phase one of the Gigafactory is ahead of schedule. Additional parts of the factory will be built over time, it makes no sense to build it all at the same time.

Sounds like the German makers would like it in the old east Germany. Who would have guessed? 🙂

http://www.electric-vehiclenews.com/2015/10/mercedes-open-to-battery-alliance-with.html

They should build a gigafactory.

…or two, or three, and plan for future expansion to 10, or 20…

If you think about it I think the solar power battery industry could easily devour as many batteries as the electric car industry if not more. In that right now they are planning to build a 17 megawatt solar farm in my home town which is the first ever solar farm for 500 miles around in my area. If the power company wanted to add say ten megawatts of battery storage for the 6.00PM to 9.00PM power using crowd that could easily devour over a 1000 cars worth of 80 kilowatt battery packs with that project alone.

I think the reasons EVs and EREVs haven’t started selling in larger numbers are:
1. Not enough batteries available yet.
2. Batteries still a little too expensive.
3. Not as high a profit margin for that type of vehicle.

As soon as 1 and 2 are eliminated, you will start to see acceleration of EV and EREV sales to higher percentages of the market.

Look how quickly higher tech products have blown older tech products out of the market.

Compare cel phones to landlines, Ipods to desktop computers, digital cameras to polaroid, digital movie cameras to VHS recorders, DVDs to VHS tapes, LED HD TVs to picture tube TVs.

The same result every time, when the superior tech reaches within a reasonable price of the old tech, the old tech becomes antique.