LG Energy Solution will invest $1.7 billion to increase the capacity at its Holland, MI electric vehicle (EV) battery factory five-fold.
The factory will produce long cell design batteries to give EVs a longer driving range. The expansion includes a two-story building housing a warehouse, control room, cell test building, administrative offices, utility, and safety facilities.
The LG batteries will be installed in EVs manufactured by Tesla, VW, and GM.
This post is based on the Electrek article, LG announces a $1.7B ramp-up, 1,200 new jobs, at its Michigan EV battery factory, by Michelle Lewis, March 23, 2022; The Detroit News article, Michigan lawmakers ask EPA to speed permits for GM battery plant in Delta Township, by Riley Beggin, April 13, 2022; and the YouTube video in the Spotlight. Image source: Gene Chutka/E+/Getty Images.
1. How did LG’s capacity expansion decision relate to the manufacturability of EV batteries?
Guidance: There is demand for long cell design batteries that give EVs a longer driving range. LG has the necessary knowledge but insufficient capacity to produce these batteries. In order to satisfy the manufacturability of EV batteries, LG has to increase capacity five-fold to provide space for a warehouse, control room, cell testing, administration, utility, and safety.
2. What factors did LG consider in making its capacity expansion decision?
Guidance: The factors include available capacity, expertise, and demand. Although LG has the expertise and demand for the long cell EV batteries, it lacks adequate capacity to produce the batteries. As a result, LG decided to invest $1.7 billion to increase its existing capacity five-fold and to add 1200 new hires.