LG Energy Solution to Invest KRW 1.7 Trillion in Its First Cylindrical Battery Plant in U.S.

• New LG Energy Solution factory for cylindrical batteries to be built with KRW 1.7 trillion investment
• Construction to begin in the second quarter of 2022, with mass production to start in 2024 with production capacity of 11GWh

SEOUL, South Korea, March 23, 2022 /PRNewswire/ -- LG Energy Solution (LGES; KRX: 373220) today announced that the company is investing KRW 1.7 trillion for the construction of a new cylindrical battery factory in Queen Creek, Arizona. The newly announced plant will be the first ever cylindrical-type battery manufacturing plant in North America, solely invested by the Korean battery manufacturer.

The construction of this 11GWh capacity site is set to begin in the second quarter of this year, with plans for mass production slated in the second half of 2024. Batteries produced from Arizona plant will be supplied to EV manufacturers including prominent startups and electric tool companies based in North America.

LGES's investment decision comes on the back of growing demand of cylindrical-type batteries in the North American market. New EV startups using cylindrical batteries are on the rise in the region, while demand for applications that use cylindrical-type batteries, such as electric tools, increases in line with the wireless trend.

"With the establishment of our new Arizona plant, LG Energy Solution aims to deliver unparalleled consumer value in the rapidly growing cylindrical battery market," said Youngsoo Kwon, CEO of LG Energy Solution. "LGES will provide the most dependable, competitive and advanced products to rise as the best business partner that our clients value and trust."

The cutting-edge Arizona plant aims to establish LGES's presence in North America cylindrical battery market while actively considering additional production in the future.

The company's brand-new manufacturing facility will utilize a state-of-the-art smart factory system boasting remote support, manufacturing intelligence, logistics automation and more. This one-of-a-kind technology, along with its expertise in the mass production of batteries, will allow LGES to meet consumer demands in a stable manner and secure the company's leadership in the North American battery market.

About LG Energy Solution

LG Energy Solution (KRX: 373220) is a global leader delivering advanced lithium-ion batteries for Electric Vehicles (EV), Mobility & IT applications, and Energy Storage Systems (ESS). With 30 years of experience in advanced battery technology, it continues to grow rapidly towards the realization of sustainable life. With its robust global network that spans the US, Europe, Asia, and Australia, LG Energy Solution is more committed than ever to developing innovative technologies that will bring the future energy a step closer. Under its ESG vision "We CHARGE toward a better future," LG Energy Solution is doing its utmost to prioritize environment, fulfil social responsibilities and shape sustainable future. For more information, please visit https://www.lgensol.com.

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SOURCE LG Energy Solution