LG Chem to Spend $1.8 Billion to Build Their Own Electric Cars

Introduction

First of all, LG Chem Ltd. (051910), South Korea’s biggest chemicals maker. For they said it plans to spend 2 trillion won ($1.8 billion) by 2013. All to expand its electric-car battery capacity.

The chemicals maker has finished building a plant in Ochang, South Korea. One that can also supply lithium-ion batteries for 100,000 vehicles every year. I mean that’s what LG Chem said in a regulatory filing today. The plant is the world’s largest by capacity, the company said.

LG won big on Batteries

The shares rose to a record today as LG Chem said it aims to get 2 trillion won in battery sales by 2013 and 4 trillion won by 2015. The company has signed supply deals with carmakers including Ford Motor Co., China-based Chongqing Changan Automobile Co. and Renault SA, and aims to capture 25 percent of the world’s electric-car battery market within four years.

The company is currently building a second plant in South Korea and a third in the U.S., with operations slated to begin in 2012. LG Chem said last year it may be able to supply batteries for 350,000 vehicles annually by 2013.

Chevy Bolt History

The shares also rose 1.9 percent to 477,500 won in Seoul trading. For that’s compared with the 0.2 percent decline in the benchmark Kospi Index. LG Chem also advanced 91 percent in the past year.

In conclusion, General Motors Vice Chairman Stephen Girsky, who attended the completion ceremony of the Ochang plant today. They said the U.S. carmaker plans to invest 4.8 trillion won in South Korea over the next three years. Finally and he didn’t elaborate. That was probably the Chevy Volt and Bolt!

Source: Bloomberg and GM-Volt.com