South Korean battery maker LG Energy Solution Ltd (LGES) plans to reevaluate its funding plan for a standalone Arizona battery manufacturing unit because of the present U.S. financial setting, an organization spokesperson stated on Wednesday.
The spokesperson’s feedback on the beforehand introduced $1.3 billion funding got here after LGES stated in an announcement that, “Given the unprecedented financial circumstances and funding circumstances within the U.S., LG Energy Solution is at the moment reviewing varied funding choices.
“The firm, South Korea’s greatest participant within the booming marketplace for electrical autos and batteries, stated no choices have been made in its assertion, which didn’t point out the Arizona plan.
LGES shares fell 2.6% in early buying and selling, whereas the benchmark KOSPI index was down.
The assertion comes simply three months after LGES, which counts Tesla Inc, General Motors Co and Volkswagen AG amongst its clients, introduced plans to construct a battery manufacturing unit in Arizona by 2024 to fulfill demand from startups and different North American clients.
LGES stated in March the plant could be its first U.S. manufacturing unit to make cylindrical cells, a sort of battery that has been utilized in Tesla and Lucid autos. Construction was to start within the second quarter of 2022, it stated, with mass manufacturing to begin in 2024.In the United States, LGES is constructing three vegetation with GM in Ohio, Tennessee and Michigan and plans to increase its present manufacturing unit in Michigan.
LGES has manufacturing websites within the United States, South Korea, China, Poland, Canada and Indonesia.
Source: www.financialexpress.com”