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According to foreign media reports, LG Chem will build a car battery factory in Poland, and the current investment cost and capacity have not yet been determined. LG Chem has announced that it will build an electric vehicle lithium battery factory in Poland to meet the demand of European automakers to cut transportation costs. LG Chemical will break ground at the end of the year and the new plant will be officially completed by the end of 2017. It is the first time that a battery factory has appeared in Europe, but there are such chemical plants in Korea, China and the United States. The capacity and investment costs of the new LG plant have not yet been determined.
LG's Seoul headquarters also said that the establishment of the Polish battery factory aims to increase sales of the automotive battery business, from about 1.2 trillion won (about 6.48 billion yuan) planned for 2016 to 7 trillion won in 2020.
LG Chem has shown that orders will increase significantly after the development of a battery that can run 300 kilometers after charging. The company will focus on developing technology to improve fast charging capabilities and achieve 500 kilometers or more even after each charge.
As the world's third-largest manufacturer of automotive lithium batteries, LG Chem supplies automotive batteries to 28 companies in China, Korea, Europe and the United States, including General Motors. Considering the weight of the battery, the construction of the factory in the user's home can significantly reduce transportation costs.
LG Chem is not a car battery manufacturer targeting the European market. Samsung SDI also plans to build a factory in Hungary, which is expected to cost around 400 billion won and be completed in the second half of 2018. Samsung SDI will likely become a supplier to European car dealers like BMW.