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Korean group invests over 100 billion in U.S. battery

According to foreign media reports, South Korean President Moon Jae-in announced a US$39.4 billion investment plan for South Korean companies in the United States, involving companies including Samsung, SK, LG, and Hyundai, of which US$21.4 billion (approximately 137.7 billion yuan) Used in new energy vehicles and battery industries.


Among them, LG New Energy and SKI will invest about 14 billion U.S. dollars (approximately 90 billion U.S. dollars) to establish a local joint venture company or invest separately; Hyundai Motor plans to invest 7.4 billion U.S. dollars (approximately 47.6 billion U.S. dollars) in new energy vehicle production and charging infrastructure. yuan).


LG New Energy and General Motors will build an electric vehicle battery plant in Tennessee, and invest a total of 2.7 trillion won in the plant through a joint venture Ultium Cells. The company plans to have an annual production capacity of at least 35 GWh in the first half of 2024. In addition, LG New Energy is considering building two more factories and invest at least 5 trillion won by 2025.


SKI plans to invest 3 trillion won to establish a joint venture with Ford to produce EV batteries with an annual production capacity of 60GWh. SKI will also invest another 3 trillion won in two factories currently under construction in Georgia. In addition, it is considering investing another three trillion won to build two other factories.


Hyundai Motor has announced a few days ago that before 2025, it will invest 7.4 billion US dollars in the United States to produce future electric vehicles, upgrade factories, and further invest in smart mobility solutions. Hyundai Group is expected to expand its plant in Alabama, USA, to produce Ioniq 5, Ioniq 6, Genesis JW, etc.


On May 18, U.S. President Biden said in a speech when he visited Ford Motor Company that electric vehicles are "the future of the automobile industry" and China is already leading the race. Biden believes that the current situation must be changed so that the United States will surpass China in the competition for electric vehicles.


To achieve this goal, Biden proposed an "electric vehicle plan" worth about US$174 billion (approximately RMB 1.1 trillion).


The South Korea’s several investment plans this time can help Biden’s infrastructure plans to promote the development and production of the US electric vehicle industry.


However, although Japanese and Korean battery giants including LG New Energy, SKI, and Panasonic have built factories in the United States to produce power batteries, and even built lifepo4 battery factories with American OEMs such as Tesla, General Motors, and Ford, there is a lack of local power battery companies in the United States. , Does not have the ability to supply large-scale localized mass production, which means that for a long period of time in the future, the supply of power batteries in the United States will still rely on external manufacturing.


In addition to lithium batteries, the United States lacks localized mass production and supply capabilities in the industrial chain including core lithium battery materials such as positive electrodes, negative electrodes, separators, electrolytes, and lithium battery production equipment, which is difficult to support the ambitions of the US electric vehicle industry.


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