LG Energy Solution Ltd (LGES), the South Korean company famed for battery production, plans to enter a business agreement with the Canadian company, Stellantis. LG Energy Solution is about to invest $1.5 billion to form a venture with Stellantis, LGES said this wednesday.
LG Energy Solution is a Storage battery production company, headquartered in South Korea. They are the one and only lithium-ion battery producer with a global scale production. The company has sites in the USA, Poland, South Korea, China and Indonesia. LGES is supposed to gain 51% of the venture formed while Stellantis, a multinational automotive production company, owns 49% of the deal.
The venture is said to be named “LGES-STLA JV”. LGES stated that it has the approval to guarantee a debt of $627 million for the venture with stellantis. LGES and Stellantis were found to have struck a deal to produce electric vehicle batteries last October. The companies plan on delivering their first products within the first few months of 2024. They also plan to produce 40 gigawatt hours of batteries yearly.
LGES has also shown its desire to build a site in Arizona to provide for the demand in the United States. The said LGES plant would produce cylindrical batteries to respond to the demands for electric vehicle batteries. LGES has some major customers to purchase its batteries,who excel in automobile and electric vehicle production in their own right, with Tesla, Gm and Volkswagen being some of them. The construction of the production site is still under consideration and a final decision has not been taken.
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