LG Chem Starts Construction Its Largest EV Battery Plant in Poland

1 year ago by Mark Kane 27

LG Chem Starts Construction of an Electric Vehicle Battery Plant in Poland

LG Chem Starts Construction of an Electric Vehicle Battery Plant in Poland…apparently workers will all be required to wear three piece suits

LG Chem lithium-ion battery cell

LG Chem lithium-ion battery cell

LG Chem has officially begun construction of its European battery factory in Poland, and will invest some $360 million into the facility by the end of 2018.

It will be fourth, and largest LG Chem manufacturing factory, with capacity for 100,000 batteries annually (cells, modules and packs) capable of propelling an EV (on average) for about 200 miles (320 km).

Production is expected to start in second half of 2017.

Combined output from four plants to be 280,000 packs.

“LG Chem will build an EV battery plant inside the LG cluster located in Kobierzyce Commune near Wroclaw in southwestern Poland. The plant has a size of 41,300 ㎡ and aims to start production in the 2nd half of 2017.

Chevrolet Bolt EV's 60 kWh LG Chem Battery

Chevrolet Bolt EV’s 60 kWh LG Chem Battery

LG Chem will invest approximately 400 billion KRW in the plant by the end of 2018. When the investment is complete, the plant will have the production capacity that can provide more than 100,000 batteries per year for pure high-performance EVs that can run up to 320 km once charged. The plant is the first large-scale lithium-ion battery plant for automotive application in Europe.

To respond to the requests of local customers quickly, the company will build a fully integrated production system that produces all battery components from electrodes to cells, modules, and packs for the first time in Europe.

By building an EV battery plant in Poland, LG Chem can reduce logistics cost, supply products to carmakers in a timely manner, and enhance strategic partnership with local clients.
Once the Poland plant is built, LG Chem will have established a global production system of four internationally located plants, which are the largest in the industry. The production system will be composed of the Ochang plant in South Korea, Holland plant in the United States, Nanjing plant in China, and Wroclaw plant in Poland, securing the production capacity of more than 280,000 batteries for pure high-performance EVs.

LG Chem is the only company in the world that has established production plants in the United States, China, and Europe, which occupy about 90% of the global pure EV market, establishing a foothold to become a global market leader.

The plants in the United States, China, and Poland will supply products to the local market while the Ochang plant in South Korea will supply products to Korean automobile manufacturers and at the same time controlling the overall supply need by global customers.”

UB Lee, the President of Energy Solution Company, LG Chem said:

“We will turn the Poland EV battery plant into a mecca of battery production for electric vehicles around the world. As LG Chem’s Poland EV battery plant is the first large-scale automotive lithium battery production plant in Europe, it will play the role of vitalizing the electric vehicle industry across the whole Europe. We will put all our efforts into making the plant into a main production hub for EV batteries.”

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27 responses to "LG Chem Starts Construction Its Largest EV Battery Plant in Poland"

  1. RexxSee says:

    Far than enough in two years for this growing market.
    But a clue that GM is still not committed to provide enough BEVs.

    1. Yogurt says:

      GM is commited more than any other legacy auto maker not named Nissan but still not fuly commited and they will not be until countries force EVs or until the market demands them…

      It is good that LG is building a plant but capacity wise it seems like it is only being built for tomorrow and not next week or next month because batery demand is only going to keep going up even if Norway and China are the worlds only leaders…

      1. georgeS says:

        Agreed Yogurt. I’m not sure why LG and GM get so much flak in the comment section. Their devotion to electric tech is second in the industry next to Tesla.

        This is the interesting little tid bit about their manufacturing from the article:

        “The production system will be composed of the Ochang plant in South Korea, Holland plant in the United States, Nanjing plant in China, and Wroclaw plant in Poland,”

        I’ve tried to put some giga byte numbers to all these plants and I think I came up with 5 GWh/yr for Holland. Sure it’s no giga factory like Tesla’s but it is respectable.

        1. RexxSee says:

          Don’t put GM and LG in the same basket.
          Nissan and GM are not devoted, they are just the least worse, the designed volunteers to make believe the ICE cartel is committed in going green.

          LG, Samsung and others don’t have an agenda on selling ICE cars.

        2. Pushmi-Pullyu says:

          I’m not sure why LG and GM get so much flak in the comment section. Their devotion to electric tech is second in the industry next to Tesla.

          Perhaps at least in part it’s because LG Chem keeps bragging about how many batteries it makes, and how fast it plans to ramp up production, to challenge Panasonic/Tesla. The reality is that LG Chem is a distant third, with only about a third of the production of Panasonic’s current output, let alone what Panasonic plus Tesla will be with the Gigafactory! LG is currently behind BYD, too.

          It’s good to see that LG is finally moving to make future plans for more battery production, because they certainly haven’t been doing much along that line lately.

          As far as GM and the Bolt go, let’s remember that GM has to settle for just a fraction of LG’s battery output. We’ll know that GM is serious about building compelling long-range EVs in large number if and when they move to build their own battery factories. So far, they’re not even talking about the possibility of doing that.

      2. Martin Winlow says:

        Nonsense. The Renault/Nissan alliance is 100 times more into EVs than GM. Just because they don’t have a foot hold in the US (and equally just because you can’t be bothered to research your ideas properly) doesn’t mean they don’t exist!

        1. Yogurt says:

          You might want to read what people say a little more carefuly as I agree with you and I did say Nissan is more commeted to EVs than GM…

          “GM is commited more than any other legacy auto maker not named Nissan”

  2. Peter says:

    This plant is for Renault-Nissan, not GM.

  3. Rob Stark says:

    “LG Chem has officially begun construction of its European battery factory in Poland, and will invest some $360 million into the facility by the end of 2018.”

    “LG Chem will have established a global production…of more than 280,000 batteries for pure high-performance EVs.”

    That is adorkable!

    1. Four Electrics says:

      By my reckoning, the plan is for 750,000 by 2020.

      1. przemo_li says:

        “Battery pack” numbers is BS.

        kWh please.

        1. Pushmi-Pullyu says:

          +50 GWh

          Looks to me like the vague talk in their press release about number of batteries or number of cars just means they don’t want to specify how many GWh of battery cells their factory is intended to produce.

  4. mg says:

    Numbers adds up pretty much.

    In other articles I found, stated capacity of all the sites is as follow:

    Holland, US – 50k batteries
    Nanjing, China – 50k batteries
    Wrocław, Poland – 100k batteries.
    Ochang, Korea – ???, but given total capacity of 280k, there is 80k unalocated batteries fo Korea.

    What’s more interesting one article suggest 6GWH capacity production for Korean facility. That actually match pretty well 80k 60kwh-usable battery packs, and 200+ EPA miles as standard-battery-pack unit.

    That would mean some 7GWH Wrocław plant apacity.

    1. Tech01x says:

      They don’t use the same units.

      Near as I can tell, the new plant is about 4GWh or so… The Ochang plant was rated at 3.2 GWh a while ago. Likely, their 320 km is NEDC rating anyways.

      1. mg says:

        http://www.koreaherald.com/view.php?ud=20160306000323

        states 10k batteries for Hyundai Sonata a day. So 1.62 kwh x 10000 x 365 days = 5,9 gwh

      2. mg says:

        Although I agree, that those press reports are hard to interprete. For example i found one article stating that china factory is to have 100k packs capacity, and on another I found 50k figure.

        But for example this article states 50k adv. pure electric or 180k phev – assuming volt as phev standard
        180k x 16-18 kwh = 50k x 60 kwh.
        And It confirms my estimation.

        http://www.koreatimes.co.kr/www/news/tech/2015/10/133_189601.html

        On the more sobering note – estimated(by EV Sales) LG battery car battery production for 2015 was 1.5 gwh nowhere near this future 15-20gwh. But – there were informations that LG is hugely overcapacited(if there is such a word:D), and more importantly – that global figure in my opinion contains also electronics batteries which might be 3-4 gwh bussines for LG.

        1. Tech01x says:

          Well, this article is a bit older and states that Ochang was 3.2 GWh – link

          With a 30-40% increase in densities per cell, we’re talking about roughly 4 to 4.5 GWh.

          This link has the correlation with the other plants, but it isn’t loading for me anymore:

          Here’s the Google Cached version (link)… note that there is a typo in the last sentence about Holland:
          (40,000, not 400,000)

          That puts the 2019 capacity for LG around 11 GWh.

          Each of the new EV rating is really 40 kWh, as in the new Zoe.

        2. Pushmi-Pullyu says:

          mg said:

          “…there were informations that LG is hugely overcapacited(if there is such a word:D)”

          I remember a comment by InsideEVs’ Jay Cole that mentioned a lot of unused capacity in LG’s factories. So it may be difficult to predict just how many GWh of battery cells LG Chem can produce if and when all its factories are running at full capacity.

          On the other hand, it may be that some of those factories are located in countries with such poor currency exchange rates that it doesn’t make any sense to put a mothballed factory back into production, even with LG Chem’s new, cheaper cells in such high demand.

    2. LS says:

      That would bring the total annual production of LG Chem to 20GWh.
      That’s nice !
      Until you remember that the Tesla Gigafactory 1 has a target output of 150GWh.
      Not sure that LG Chem will be able to retain its Global Market leadership in the next 2 years.

      1. Pushmi-Pullyu says:

        LG is very far from being the market leader. But kudos to their marketing department for obscuring the fact that their global output, in GWh, is about 1/3 that of Pansonic’s.

    3. Cavaron says:

      So let’s say they have something between 20-25 GWh battery production annually by 2018. Tesla aims to 30-35 GWh by then.
      The thing is: LG has to split it’s production between several manufacturers like GM/Opel, Nissan/Renault and more. So if Tesla can do 500.000 cars with 35 GWh (about 70 kWh per car on average), all LG customers have to share the ~ 400.000 packs with 60 kWh on average. So don’t expect more than 100.000 Bolt, Leaf2 and Zoe2 plus some PHEVs available in 2018, while there will be 500.000 Teslas on the market.

  5. LOL says:

    Does this mean GM/Opel will be able to drop the entry price of Bolt/Ampera e in Europe ? Maybe that’s the reason for price announcement being pushed to spring 2017. ..

    1. Mikael says:

      Poland is safe. Unlike some places where it seems like war is already going on.

      http://www.bbc.com/news/world-us-canada-34996604

  6. KM says:

    LG will have the capacity reflecting orders from auto manufacturers. There is no point in investing more if that’s what they need. If I remember correctly they sold their chemical and fertiliser bussiness to have funds for battery plants.

  7. Kdawg says:

    LG announces new plant.

    EV group: “Boooo!!”

    ???

    1. Just_Chris says:

      I have to admit I’m with you on this one.

      All the ducks appear to be falling quite neatly into a row and everyone that survived the 2015 dull drums appears to hate it.