‘Global manufacturing strategy has been passed’…LG Chem to obtain orders from the US, Europe
Park Seul Gee | seul@ | 2017-03-09 10:13:46
[Digital Times, by Park Seul Gee] LG Chem is continuing to expand its battery business in the US and Europe despite risk of China. After the controversy over THAAD (Theater of High Altitude Area Defense Missile) on the Korean peninsula last year, LG Chem has been struggling to sell its batteries due to tightened battery certification regulations of China. However the US and Europe seem to cover all those difficulties of LG Chem.
According to the battery industry on March 8, LG Chem will supply the battery to the ‘DS7 cross-bag hybrid’, a sport utility car (SUV) of luxury brand DS which is planned to be released by Citroen of France PSA Group in 2019. The cars will include batteries produced by LG Chem and CATL of China.
LG Chem has secured a competitive advantage in the European electric car battery market by establishing a strategic alliance with PSA Group. LG Chem has been already supplying EV batteries to European automobile manufacturers such as Audi, Renault, Volvo and Daimler. Renault``s electric car model ``Joe``, which is equipped with LG Chem``s battery, has been sold more than 20,000 units in Europe last year and is gaining continuous popularity. In particular, the PSA Group is expected to finalize the takeover of General Motors`` (GM) Opel in this year, and additional orders can be expected.
Besides, LG Chem is continuing to grow in the US electric car market, with sales of GM``s electric car ‘Volt’ in increasing numbers. GM ‘Volt’ is expected to sell more than 30,000 units this year, and LG Chem``s battery supply is also expected to increase accordingly. In accordance with these plans, LG Chem plans to introduce a pack assembly facility in Netherlands to supply batteries for electric cars such as Volt. The scale of the factory expansion is about 9000 square meters.
LG Chem is gaining a competitive point despite of China``s certification regulations, as domestic electric car battery makers are having difficulty due to that Chinese battery certification regulation. LG Chem, on the other hand, has secured a competitive point by investing in battery technology and has built a system that capable of responding to the needs of automobile manufacturers through local production. LG Chem is building an overseas production network of 100,000 units in Korea, 30,000 units in the US, 50,000 units in China, and 100,000 units in Poland, which are scheduled to be completed within this year. LG Chem is expected to secure the production capacity of more than 280,000 units of pure EV battery through its factory expansion plans.
LG Chem has set out the system that is able to cover the difficulties of Nanjing factory in China. LG Chem is also planning to sell its production line in China to other Asian countries due to factories in China are now in only 20% operation.
LG Chem representative stated, ‘While it is true that our China factories are experiencing difficulties, the US, Europe and China have built a system that can flexibly respond to the market situation in each country by establishing a triangle of overseas production base. We plan to overcome these difficulties by expanding exports towards Asia-Pacific areas. ‘
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to the battery industry on March 8, LG Chem will supply the battery to the ‘DS7 cross-bag hybrid’, a sport utility car (SUV) of luxury brand DS which is planned to be released by Citroen of France PSA Group in 2019. The cars will include batteries produced by LG Chem and CATL of China.
LG Chem has secured a competitive advantage in the European electric car battery market by establishing a strategic alliance with PSA Group. LG Chem has been already supplying EV batteries to European automobile manufacturers such as Audi, Renault, Volvo and Daimler. Renault``s electric car model ``Joe``, which is equipped with LG Chem``s battery, has been sold more than 20,000 units in Europe last year and is gaining continuous popularity. In particular, the PSA Group is expected to finalize the takeover of General Motors`` (GM) Opel in this year, and additional orders can be expected.
Besides, LG Chem is continuing to grow in the US electric car market, with sales of GM``s electric car ‘Volt’ in increasing numbers. GM ‘Volt’ is expected to sell more than 30,000 units this year, and LG Chem``s battery supply is also expected to increase accordingly. In accordance with these plans, LG Chem plans to introduce a pack assembly facility in Netherlands to supply batteries for electric cars such as Volt. The scale of the factory expansion is about 9000 square meters.
LG Chem is gaining a competitive point despite of China``s certification regulations, as domestic electric car battery makers are having difficulty due to that Chinese battery certification regulation. LG Chem, on the other hand, has secured a competitive point by investing in battery technology and has built a system that capable of responding to the needs of automobile manufacturers through local production. LG Chem is building an overseas production network of 100,000 units in Korea, 30,000 units in the US, 50,000 units in China, and 100,000 units in Poland, which are scheduled to be completed within this year. LG Chem is expected to secure the production capacity of more than 280,000 units of pure EV battery through its factory expansion plans.
LG Chem has set out the system that is able to cover the difficulties of Nanjing factory in China. LG Chem is also planning to sell its production line in China to other Asian countries due to factories in China are now in only 20% operation.
LG Chem representative stated, ‘While it is true that our China factories are experiencing difficulties, the US, Europe and China have built a system that can flexibly respond to the market situation in each country by establishing a triangle of overseas production base. We plan to overcome these difficulties by expanding exports towards Asia-Pacific areas. ‘
By Park Seul Gee seul@