LG Energy to secure $1.36 bn to raise US battery output
Ye-jin Jun
Nov 26, 2021 (Gmt+09:00)
LG Energy Solution Ltd. is set to secure $1.36 billion to expand US battery output capacity, joining the fundraising race among South Korean battery makers to increase overseas production bases.
LG Energy’s US unit decided on a rights offering of 788.1 billion won ($681 million), its parent LG Chem Ltd. said in a filing to a South Korean financial regulator. In addition, LG Energy Solution Michigan Inc. plans to raise $681 million through loans, according to the filing.
“The company is slated to use the proceeds as investment sources to meet the increasing demand for electric vehicle batteries and energy storage systems (ESSs),” LG Chem said.
TO EXPAND CAPACITY TO 150 GWH
LG Energy, which operates a battery plant with an annual capacity of 5 gigawatt hours (GWh) in the US state of Michigan, is expected to increase battery output in North America to 150 GWh. It plans to set up another 40 GWh-capacity factory.