| Opening of Biggest EV Battery Plant | |
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OCHANG, North Chungcheong - LG Chem yesterday opened what it said was the world’s largest electric vehicle battery plant in a ceremony attended by President Lee Myung-bak.
The president said that the plant would help “Korea lead green growth as electric vehicles will be a must in the future.”
LG said it aims to become the world’s largest producer of lithium-ion batteries for electric cars by 2015, with a global market share of more than 25 percent and sales of 4 trillion won a year ($3.7 billion.)
The Ochang plant, which will have an annual production capacity to supply 100,000 electric cars, is the first of three plants that LG Chem is planning to build in the next several years.
Together with two plants in Korea and one in the U.S., the investments will amount to a total cost of 2 trillion won by 2013, LG Chem said it will be able to supply batteries for 350,000 electric vehicles annually.
LG Chem is now supplying batteries for General Motors, Hyundai Motor, Ford, Renault and Volvo.
Peter Bahnsuk Kim, LG Chem’s vice chairman and chief executive, said he expects more supply contracts from Japanese automakers.
“We have already begun the development of ‘second generation’ batteries with our clients that will be completely different from the batteries available now and these will be supplied between 2014 and 2015,” said Kim.
“As a market leader, we need to keep our competitive edge, with two Korean companies and one Japanese likely to survive in the end.”
Stephen Girsky, a GM vice chairman who attended the ceremony, said the U.S, automaker plans to invest 4.8 trillion won in Korea over the next three years for design engineering and manufacturing plants associated with the local operations of GM Korea, formerly GM Daewoo.
“The investment in eco-friendly businesses that President Lee is advocating will place Korea among the leaders when it comes to reducing our reliance on fossil fuels and addressing global environment challenges,” said Girsky. President Lee said the EV battery project will include 130 small contractors and directly employ 4,000 workers and create 10,000 new jobs.
Source: JoongAng Daily (April 7, 2011) |
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