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Tag: LG Chem

  • LG Chem is expanding in Europe and wants new joint ventures with car manufacturers

    LG Chem is expanding in Europe and wants new joint ventures with car manufacturers

    South Korean group LG Chem, the world’s largest maker of electric car batteries, is in talks with ”several” carmakers to set up joint ventures to make batteries, CEO Hak Cheol Shin told Reuters on Friday.

    LG Chem is making progress with joint ventures with US automaker General Motors (GM) and Chinese group Geely and hopes to expand its collaboration with other automakers, Shin said, without giving further details.

    The South Korean group is currently supplying batteries from its factory in Nanjing, China, for Model 3 vehicles produced at the Tesla plant in Shanghai.

    Shin added that Testa is not one of the companies with which LG Chem discusses joint ventures.

    LG Chem, which has a factory in Poland, is also looking for a location for a new battery factory in Europe, the head of the South Korean group announced.

    In 2017, LG Chem announced that it will invest over one billion euros to increase the production capacity of its unit in Poland.

  • Investigation into public support for LG Chem’s plant in Poland

    Investigation into public support for LG Chem’s plant in Poland

    The European Commission has opened an in-depth investigation to assess whether €95 million of public support granted by Poland to chemical company LG Chem Group for investing in the expansion of its battery cell production facility for electric vehicles (EV) in Biskupice Podgórne in the Dolnoślaskie region (Poland) is in line with EU rules on regional State aid. 

    In 2017, LG Chem decided to invest more than €1 billion in the expansion of its production capacity of lithium-ion cells and battery modules and packs for electric vehicles in its existing plant in the Dolnoślaskie region of Poland.

    In 2019, Poland notified the Commission of its plans to grant €95 million of public support for the expansion.

    At this stage, the Commission has doubts that the planned public support of €95 million to LG Chem for the expansion of the Biskupice Podgórne plant complies with all relevant criteria of the Regional Aid Guidelines.

    The Commission will now investigate further to determine whether the initial concerns are confirmed.

    In 2019, the Commission approved a €36 million investment aid granted by Poland to support LG Chem’s €325 million investment for the creation of the Biskupice Podgórne in the Dolnoślaskie region of Poland.