LG Energy Solution will invest 4 trillion won ($3.1 billion) by the end of 2026 to expand capacity at its battery plant in Ochang, North Chungcheong, upping its bet on cylindrical-type EV batteries.
The 4-trillion-won funding includes the 730-billion-won investment announced in June and will be used in ramping up production capacity for next-generation cylindrical batteries at the Ochang plant, the battery maker said.
The battery maker declined to specify the plant’s future capacity and did not disclose the exact types of batteries that will be produced. According to local press reports, the main product will be 4680 batteries, a newer battery type with better energy efficiency than previous types. The 4680 indicates the size of the battery — 46 millimeters (1.8 inches) in diameter and 80 millimeters in length.
The June announcement indicated that the Ochang plant will add 9 gigawatt hours of 4680 cell annual capacity and 4 gigawatt hours of 2170 cell capacity. The new production lines will feature an advanced factory operating system to maximize production capabilities. With the expansion, a total of 1,800 employees will be hired.
North Chungcheong Governor Kim Young-hwan pledged to expedite approvals and related processes for the proposal by establishing a dedicated team at the provincial government.
Kim said in a statement released by LG Energy Solution: “We will run a team tasked with resolving a wide range of administrative issues throughout the entire process — from groundbreaking to operation”.