South Korea’s LG Chem is reportedly set to build a second lithium-ion batteries production plant in Poland as orders outstrip the capacity of its existing facility in the country.
The move comes just a year after production of batteries for electric vehicles started at the group’s existing Kobierzyce production facility in southwestern Poland, with a capacity of around 100,000 batteries annually.
In Yong Shim, the CEO of Polish operation LG Chem Wroclaw Energy, has now said the company expects to invest a further PLN5.8 billion (US$1.5bn) on building a new plant— a “second Kobierzyce, because we have so many orders”.
Shim reportedly told Polish business journal Puls Biznesu: “The construction of a new factory must start by June next year. Plans for another plant, which is most likely to be located in Poland, are at an advanced stage, there are plans for another plant. We may announce the decision before the end of this year.”
Batteries from Kobierzyc supply many electric car manufacturers including Daimler, Porsche, Volvo, Audi, Renault and Jaguar, Shim said. A three-storey building is under construction in Kobierzyce, with production on another new hall due to start by the end of this year.
At Kobierzyce alone, LG Chem aims to increase production from 10 gigawatt-hours annually to 70GWh within two to three years, Shim said.
LG Chem did not respond to BEST Battery Briefing’s request for details of its Polish expansion plans.
Earlier this year, LG Chem unveiled plans to build a second battery production plant in Nanjing, eastern China, which will reportedly make batteries for 100,000 new electric vehicles annually.