Battery maker
LG Energy Solution
is pushing ahead with a multibillion dollar investment in a new factory in Arizona. It’s a win for the Biden administration’s aim to build the battery-supply chain in the U.S. and could strengthen ties between LG Energy and
Tesla.
Korea’s
LG Energy
(ticker: 373220.Korea) on Friday said it would spend 7.2 trillion won ($5.60 billion) in what it called the “largest single investment ever” in a standalone battery manufacturing facility in North America.
It could also potentially lead to a deeper relationship with
Tesla
(TSLA).
LG Energy already makes batteries for Elon Musk’s Tesla in China. Supplying batteries from a U.S. facility could help it seal deals for Tesla vehicles eligible for tax incentives. LG Energy has previously said it has had talks with Tesla over supplying batteries from the proposed Arizona factory.
LG Energy said in its statement that the facility in the U.S. would meet demand for locally manufactured batteries which would be eligible for the Inflation Reduction Act’s EV tax credits.
Write to Adam Clark at adam.clark@barrons.com
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