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10 Dec South Korea’s LG Energy Solution Mulls USD2bn EV Battery Plant in Canada
South Korean electric vehicle (EV) battery maker LG Energy Solution (LGES) is in discussion with the government of Ontario in Canada on launching a USD2bn battery plant for EVs, as reported by the Korea Herald on December 9. The plant is part of LGES’s USD4.76bn plan in North America to boost its annual production capacity by 55 gigawatt-hours (GWh) in the region by 2024.
LGES’s USD4.76bn investment plan came after the US, Mexico, and Canada launched an agreement last year, removing the tariffs on vehicles that have 75% of auto parts made in North America. Following the launch of the new Ontario battery plant, the South Korean company is likely to further its collaboration with carmaker General Motors [GM:US] while the two companies’ joint venture, Ultium Cells, is building two battery plants in the US. In addition, LGES is looking to raise a maximum of KRW12.75tr from its upcoming listing in January with an estimated market capitalization between KRW60.1tr to KRW70.2tr.