7.3 Billion Yuan! Lg Chemistry Expansion Of Battery Production Line In Nanjing

Today (10) South Korea LG Chemistry said it would invest 1.2 trillion won (about 7.3 billion yuan) to expand its battery production line in Nanjing, China, to cope with the surge in global demand for cylindrical batteries.

Cylindrical batteries are widely used in LEV light electric vehicles, such as electric bicycles and motorcycles, as well as electric tools and wireless vacuum cleaners. Global demand has soared, the report said. According to a data released by market research company B3, global demand for cylindrical batteries will increase from 2.3 billion in 2015 to 6 billion this year.

It is understood that as early as the end of 2015, LG Chemistry completed the construction of a power battery factory in Qixia District, Nanjing. According to the capacity planning at that time, LG Chemistry plans to support 50,000 electric vehicles worldwide in 2016, and to expand its capacity to 200,000 electric vehicles by 2020. LG Chemistry has said that Nanjing is the third largest power battery factory in the world after Wucang factory in Korea and Holland factory in the United States. It will also be the most important power battery production base in LG Chemistry.

In February 2017, LG Chemistry will expand its battery factory in Nanjing, China, to build an additional car battery factory and a small battery factory. Although LG Chemistry did not disclose the specific amount of investment, it is reported that the construction costs of the two factories amounted to $35 million.

In July 2018, LG Chemistry built its second power battery plant in China. The project, with a total investment of about $2 billion, will be completed and put into operation in October 2019, with an annual capacity of 32 GWh by 2023.

Three months later, on October 23, a $2 billion LG chemical power battery project was launched in Binjiang Development Zone, Jiangning. It mainly produces power batteries, energy storage batteries and small batteries. The factory plans to build 23 production lines of electrodes and batteries, including 16 power batteries, 3 energy storage batteries and 4 small batteries. The first phase of the project is expected to start mass production in the fourth quarter of 2019 and achieve full production in 2023. The annual production capacity of the project can reach 32GWh after its completion.

According to Jin Zhong, Minister of LG Chemical Battery Business, after the expansion of Nanjing production line, LG Chemistry is expected to lead the electric vehicle market, and will also take the lead in new fields such as light electric vehicles and electric tools.