LG Chem, the global leader in electric vehicle battery manufacturing, has now secured contracts with each of the Big Three automakers.
As we had hoped, Chrysler has recruited LG Chem to produce batteries for its Pacifica plug-in hybrid minivan. LG Chem was already the exclusive supplier of batteries for the GM Volt, as well as engaged in a 2010 deal with Ford.
The batteries will be manufactured at LG Chem’s plant here in Holland, Michigan, which has the capacity to produce batteries for more than 120,000 plug-in hybrid EVs every year. We’ve reported previously that LG’s Holland factory has the potential to be North America’s biggest EV battery plant.
As reported by Korea Times,
Lee Ung-beom, president of LG Chem's energy storage division, said in a statement, "We are going to push for leadership in the global battery market, backed by a strong alliance with the big three U.S. clients."
It’s good news that LG Chem will be ramping up production of batteries at the Michigan facility. A busier, more capable plant in Michigan means a convenient source of EV batteries for Michigan automakers and another incentive for them to get serious about EV production.
Korea Times also reported that, according to market researcher B3, the global market for EV batteries is projected to reach a value of $18.24 billion by 2020—five times what it was worth in 2013. This market is directly tied to EV production, and these numbers could be good news for Michigan, as long as the Big Three take full advantage of this relationship with LG Chem.
Parallel to Tesla’s plans for its Nevada Gigafactory, a massive battery producing plant, Michigan (and its automakers) can benefit from the LG Chem factory.