LG Chem To Increase Battery Production In Poland To 70 GWh

Volkswagen

NOV 29 2018 BY MARK KANE 27

LG Chem to produce in Europe batteries for a million EVs annually

According to Polish media, LG Chem has so many orders for electric car batteries that the recently constructed plant in Poland will be not big enough.

A year ago, we assumed that the LG Chem Wroclaw Energy will produce at least several GWh of lithium-ion batteries annually, as the company announced a goal to power 100,000 cars. First production lines are already up and running, while new ones are under construction. Orders come from Daimler, Jaguar, Renault, Volkswagen Group and Volvo, to name just a few.

Now, Jong Hyun Kim, president of LG Chem Energy Solutions is cited saying that within 2-3 years, production capacity will increase from 10 GWh to 70 GWh (for some 1 million electric cars annually). It would truly solidify the position of the market leader in Europe in terms of production capacity.

There are also rumors that a second battery plant is considered in Poland or maybe in another country. Construction of the second LG Chem plant in Europe is expected to begin in mid-2019.

Source: orpa.pl

Categories: General

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27 Comments on "LG Chem To Increase Battery Production In Poland To 70 GWh"

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sir_tech

This is really good news. 70 GWh per year equals to ~1.1 million cars (Hyundai Kona = 64 KWh). I strongly believe we will see more and new production plants and expansions of plants that are in construction before the original plans of those plants completed.

I am still puzzled why Samsung is not aggressively going for pursuing the manufacturers and constructing battery plants.

Joel B

Samsung may already see the “race to the bottom” so to speak. As batteries become more of a commodity, margins will get smaller. Not to say that it’ll be impossible to make a profit making cells, but if you are laying out several billion dollars for a brand new factory, you’d want contracts in place that would guarantee you a profit after X years. It seems like a lot of automotive manufacturers have already entered contracts with LG Chem – likely at a specific price point. LG Chem likely crunched the numbers and figured they could still turn a profit, but if Samsung doesn’t already have a good factory to start with – or a lot of contracts to guarantee future income, they might see it as being too risky.

Robb Stark

Samsung is opening a battery cell factory in Hungary and has contracts with BMW and VW.

VW has contracts with at least LG Chem and Samsung. They don’t want to be dependent on a single supplier. Samsung is supposedly the primary supplier to BMW.

I am sure the Koreans are investing billions to make zero ROI.

Michal

I think instead of making their own battety company, they will make 7000mAh batteries for their Notes and Galaxies

Kimmo57

Poland has the dirtiest electricity in Europe together with Estonia. I hope they use something other than coal power for the factory.

Cavaron

Yes, they will use whale oil power… jk, hope they get some wind or solar.

Pushmi-Pullyu

100% powered by tar sands oil. 😉

Seriously, I hope that Eastern Europe starts moving to renewable energy, even if it’s belatedly.

andre

they not even pray for it!!!!!!!!!!!!!!!!

Null

There’s a large wind tender (request for bids) in Poland

Happosai

I presume they will get an wind power PPA.

The 2016 sustainability report of LG chem reports plan of reducing greenhouse gas emissions 23% BAU by 2020. Where BAU is cheeky way of hiding the fact that they are actually growing the amount of emissions. There is no committment to source all electricity from co2-free sources.

But indeed, moving existing factories is hard, but at least the new plants should be built in regions where renewable or nuclear resources are available… France, Spain and rest of southern europe. But I guess cheap eastern european labour is more decisive factor than green grid.

I hope insideevs and other keep asking german car makers why they build things where electricity is produced with coal.

Nozuka

I can see car manufacturers help them to invest in clean energy and get cheaper batteries in return. At least that is what i would do.
Will be interesting to see how VW deals with this, because they promised that I.D cars are going to be produced CO2 neutral, including the battery (but of course with CO2 compensation in the mix). And they said they are already talking with LG about this problem, because they are going to be their biggest supplier in Europe from 2021 onwards.

Mint

Yeah, this is definitely going to be ammo for EV detractors, and compounding things is that it’s planned to be a huge factory supplying batteries for many EVs from top automakers.

I hope LG realizes this and builds a lot of renewable energy to directly power it.

Sharpe

Poland uses energy source it has in abundance. Just like Germany.

Micke Larsson

Plenty of wind, sun, biomass and uranium in Poland that they could use instead.

andre

they just use the dirtiest polluting Coal,and they sabotage all European regulations!!!!!!!

zzzzzzzzzz

Yes, they should use that nice, clean and renewable bio fuel that EU politicians like so much to improve their footprint. Who cares about these rain forests burned down in Indonesia for palm oil production.

Mark.ca

I understand that the sun does’t shine and wind doesn’t blow under your rock…but in Poland they do. Rumor has it they have rivers too…sea access….

andre

i don,t think that they would care about this for 1 second….

viriato

UE announced 2050 as the limit to using any carbon energy source, so they must to do a hard transition in the next decades. UE Co2 production in 2050 will be 0. This is the goal. Other carbon based countries like USA, China, India or Australia, has same plans? Anybody knows?.

Do Not Read Between The Lines

Oh look, we need more battery capacity. There’s a shock.

Link

I think this mainly shows that when auto makers really want to produce EVs, batteries won’t be an obstacle. Obviously this doesn’t happen over night but with a lead time of around 3 years they can supply all the battery cells the car maker needs.

Doggydogworld

LG announced a global goal of 90 GWh in 2020. Looks like most of that is in Europe. SK Innovation gets mentioned a lot for various EV models, but I haven’t seen factory numbers. CATL is also aggressive in Europe. Samsung seems to be quiet, as Sir_tech notes. BYD and the others mostly stay inside China.

elmechdesign

My first thought was that we may have crossed the “chicken and egg” point and LG is now so confident in the transition to EV transportation they are building the factory capacity AHEAD of the contracts. This would make for a great day!

Pushmi-Pullyu

Well, I hope so. But LG apparently has the most attractive prices (outside of Tesla’s Gigafactory) for EV batteries, so I wouldn’t be so sure this isn’t merely a reflection of LG getting more contracts for future deliveries to EV makers.

Pushmi-Pullyu

That’s quite an upgrade!

Wonderful to see all the news about new battery cell factories being constructed around the world. That shows the EV revolution is finally taking off!

Up the rEVolution!

Brian

Stuff’s about to get real

andre

built all those EV clean batteries with one of the dirtiest coal alimented electrical grid…….