LG Energy manufactures Series 46 cylindrical batteries at its battery plant in Arizona.
LGES recently announced that its battery factory in Arizona will become a major production center for Series 46 cylindrical batteries in North America.
Cylindrical batteries
First to respond
LGES said after announcing its third-quarter 2023 earnings report that its goal is to be the first to respond to the market demand for 46-series cylindrical batteries.
LGES said: “In order to meet the changing and diversified market needs, we will ensure differentiated production competitiveness in all market segments, from high-end to mainstream to parity.
“This will be the core engine of our continued growth in the medium to long term, and we will become a global leader to deliver the best value in the world to our customers.”
2170 to 46
The Arizona facility was initially expected to produce 2170 cells with an annual capacity of 27 GWh.
The South Korean battery supplier has decided to produce Series 46 batteries and expand its annual production capacity to 36 GWh.
LGES aims to start producing Series 46 batteries by the end of 2025.
Earlier, the longtime Tesla battery supplier quadrupled its investment in the Arizona plant, from $1.4 billion to $5.5 billion.
Revenue & IRA
At the time, LGES claimed that the increased investment was due to strong demand for electric vehicles.
The South Korean battery supplier’s operating profit, including the estimated amount of IRA tax credits, increased 94% from the previous quarter.
The increase in the amount of LGES’ IRA tax credit was attributed to improved production and sales resulting from the company’s increased production capacity in the United States.
LGES explained: “Our quarterly revenue declined slightly as European demand slowed, OEMs adjusted EV production, and metal prices reflected in the erosion of average selling prices (ASPs).
“Nevertheless, operating profit increased due to improved product mix, increased productivity of new production lines, and cost-efficiency efforts.”
