S.Korea’s LGES to review investment plan for $1.3 bln Arizona battery factory

SEOUL, June 29 (Reuters) – South Korean battery maker LG Power Answer Ltd (LGES) (373220.KS) plans to reevaluate its funding plan for a standalone Arizona battery manufacturing facility as a result of present U.S. financial setting, an organization spokesperson stated on Wednesday.

The spokesperson’s feedback on the beforehand introduced $1.3 billion funding got here after LGES stated in an announcement that, “Given the unprecedented financial situations and funding circumstances within the U.S., LG Power Answer is at the moment reviewing numerous funding choices.”

The corporate, South Korea’s largest participant within the booming marketplace for electrical automobiles and batteries, stated no selections have been made in its assertion, which did not point out the Arizona plan.

LGES shares fell 2.6% in early buying and selling, whereas the benchmark KOSPI (.KS11) index was down.

The assertion comes simply three months after LGES, which counts Tesla Inc (TSLA.O), Common Motors Co (GM.N) and Volkswagen AG (VOWG_p.DE) amongst its clients, introduced plans to construct a battery manufacturing facility in Arizona by 2024 to fulfill demand from startups and different North American clients. learn extra

LGES stated in March the plant can be its first U.S. manufacturing facility to make cylindrical cells, a sort of battery that has been utilized in Tesla and Lucid automobiles. Development was to start within the second quarter of 2022, it stated, with mass manufacturing to begin in 2024.

In the US, LGES is constructing three vegetation with GM in Ohio, Tennessee and Michigan and plans to develop its current manufacturing facility in Michigan. learn extra

LGES has manufacturing websites in the US, South Korea, China, Poland, Canada and Indonesia.

($1 = 1,290.8000 received)

Reporting by Heekyong Yang; Modifying by Tom Hogue and Kenneth Maxwell

Our Requirements: The Thomson Reuters Belief Rules.