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Source: Huanqiu.com

[Global Network Technology Comprehensive Report] On July 22, according to foreign media reports, LG Energy Solution will postpone the completion of its third battery factory jointly invested and built with General Motors (GM) in Michigan. This decision is a strategic adjustment based on the current weak demand in the electric vehicle market and the uncertainty of the global supply chain.

LG Energy Solution and General Motors jointly launched the construction of the project in 2022, planning to spend US$2.6 billion to build the third battery factory jointly invested by the two companies in Michigan, USA.

The original plan was that the new plant would be completed in the second half of 2024 and enter the first phase of mass production in early 2025, with an annual production capacity of 50 GWh, enough to support the production demand of 700,000 high-performance pure electric vehicles with a single-charge range of more than 500 kilometers. However, as the market environment changes, this schedule has to be adjusted accordingly.

According to LG Energy Solution, the main reason for the delay in completion is the slowdown in demand for electric vehicles. Although the electric vehicle market has shown rapid growth in recent years, the recent weak market demand has put considerable pressure on battery manufacturers. In response to this change, LG Energy Solution decided to flexibly adjust its investment strategy to ensure that it can quickly recover and expand production capacity when market demand picks up.