One of the world's largest battery producers is about to get even bigger as they break ground on yet another lithium-ion battery plant.
LG Chem, broke ground on June 10th for their new $802 million battery plant in Ochang Techno Park, South Korea. The groundbreaking ceremony included representatives from both GM and Hyundai on hand as both companies have battery deals with LG.
The additional facility will give LG more capacity to produce lithium-ion batteries for upcoming hybrids and electric vehicle from GM and Hyundai.
LG Chem confirmed that it will begin shipment of the Volt batteries in November of next year. The cells will be sent to LG Chem Compact Power, Inc. in Troy, MI and will receive final assembly at that site. LG would not confirm the size of the new site in Troy.
According to LG, the decision to build another battery plant was inevitable. They predict that global demand for EV batteries will reach 3.3 million units by 2013 and 4.6 million units by 2015. They expect to have $1.6 billion in market sales by 2015 and expect the total battery market to be $8 billion.
If the numbers hold true, LG looks to have about 20% of the market in their hands within 6 years. The additional plants are definitely required to meet the demand that future EVs and hybrids will bring in the coming years.
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