LG Energy Solution is planning to invest 730 billion won ($568 million USD) to expand its Ochang, South Korea production facility, according to Reuters.
The company will use the funding to add 9 gigawatt-hours of production capacity, primarily to produce increased levels of Tesla’s next-generation 4680 battery cells, with 580 billion won ($449.8 million USD) invested for the latter.
The manufacturer supplies Tesla, General Motors (GM), Volkswagen and several others with EV batteries.
Additionally, LG said it plans to invest 150 billion won ($116 million USD) in the Ochang factory on another 4 GWh of production capacity for its current-generation 2170 battery cells.
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The new lines are expected to be ready for mass production in the back half of 2023, according to a statement from the company.
LG also unveiled a plan in March to build a U.S. factory in Arizona, with 1.7 trillion won ($1.3 billion USD) set aside to build the facility by 2024.
The company is also looking to build a $4.1 billion EV battery factory in Ontario, Canada.
Honda is also partnering with LG on a $3.4 billion EV battery plant in the U.S., alongside those it already has in the U.S., China, South Korea, Poland and Indonesia.
The cylindrical 2170 and 4680 battery cells are used by companies like Tesla, and with EV battery demand skyrocketing, the company is looking to increase production globally as much as possible.
