SEOUL (Reuters) – South Korean battery maker LG Energy Solution Ltd (LGES) plans to reevaluate its investment plan for a self-contained battery factory in Arizona due to the current economic environment in the United States, said a company spokesperson on Wednesday.
The spokesperson’s comments on the previously announced $1.3 billion investment came after LGES said in a statement that “Given the unprecedented economic conditions and investment circumstances in the United States, LG Energy Solution is currently reviewing various investment options.”
The company, South Korea’s biggest player in the booming electric vehicle and battery market, said no decision was made in its statement, which did not mention the Arizona plan.
LGES shares fell 2.6% in early trading, while the benchmark KOSPI was down.
The statement comes just three months after LGES, which counts Tesla Inc, General Motors Co and Volkswagen AG among its customers, announced plans to build a battery factory in Arizona by 2024 to meet demand from startups and companies. other North American customers.
LGES said in March that the plant would be its first US plant to manufacture cylindrical cells, a type of battery that has been used in Tesla and Lucid vehicles. Construction was to begin in the second quarter of 2022, he said, with mass production expected to begin in 2024.
In the United States, LGES is building three plants with GM in Ohio, Tennessee and Michigan and plans to expand its existing plant in Michigan.
LGES has production sites in the United States, South Korea, China, Poland, Canada and Indonesia.
(Reporting by Heekyong Yang; Editing by Tom Hogue and Kenneth Maxwell)
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