South Korean battery maker LG Chem is planning to triple their production capacities in Poland in order to produce enough battery cells for 300,000 EVs annually, over the current 100,000 units. The recent order by Volkswagen bolsters LG’s expansion.
LG Chem’s supervisory board has decided to invest about 571 million dollars in the expansion of LG Chem Wroclaw Energy, which will oversee the expansion. The plan is to begin in December and to complete the expansion by April 2021. It is still unclear whether the new production lines will be installed at the factory opened this year in Kobierzyce near Breslau, or possibly set up at a new location in Poland.
The battery manufacturer is planning to begin delivering battery cells to Volkswagen at the end of 2019. In order to prepare for a smooth supply chain, both companies founded a task force in early October. And while the battery cell deal was announced in spring, not much is known outside of the starting time period, such as the actual volume of the order.
As of the middle of this month, SK Innovation has also been appointed strategic battery cell supplier by Volkswagen, thus joining LG Chem, CATL and Samsung SDI. SK Innovation also recently announced the construction of its first US battery cell factory for the electric vehicle market. It looks as if more or less all Asian battery manufacturers are pursuing plans to set up large production centres outside their home countries in China, Europe and the USA in order to benefit from rising global demand.