LG Chem plans to make an investment of 1.2 trillion won ($1.07 billion) to expand its battery plants in Nanjing, China by 2020 to respond to the growing demand for electric mobility, according to the firm on Thursday.
Under the contract, the Korean battery maker is slated to make an investment of 600 billion won for cylindrical battery cells mainly used for digital devices and another 600 billion won for pouch battery cells used for electric cars.
LG Chem’s battery plant in Nanjing, China (LG Chem)
On top of digital devices, the cylindrical battery cells will also be used for light electric vehicles, such as electric bicycles and scooters, as well as power tools and wireless vacuum cleaners, to respond to growing demand, the firm said.
According to data analytics firm B3 Intelligence, the global demand for cylindrical batteries will reach 6 billion units in 2019 from 2.3 billion units in 2015 with an annual average 27 percent growth.
“Through the expansion of the plants, we aim to lead the emerging sectors of light electric vehicles and power tools,” said Kim Jong-hyun, chief of LG Chem’s battery business division at the signing ceremony with the Nanjing regional government on Wednesday.
By Shin Ji-hye (firstname.lastname@example.org