LG Energy Solution Accelerates 100GWh Annual Capacity at Poland Plant... Supplying 60% of Europe's Battery Demand

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution (LG EnSol) is accelerating the expansion of its electric vehicle battery production with support from the Polish government. Once the expansion in Poland is completed, the annual production capacity will increase to 100 GWh (gigawatt-hours), strengthening its position in the European market.

According to industry sources on the 6th, LG EnSol is currently carrying out the fourth phase of expansion at its Wrocław plant under the support of the Industrial Development Agency (Agencja Rozwoju Przemysłu), which operates under the Polish Ministry of Economic Development. The plant, consisting of two buildings and three floors, will see its production lines expanded to dozens.

The Polish plant will emerge as LG EnSol’s key base in Europe through this expansion. As of last year, LG EnSol’s battery production capacity was 120 GWh, with the Polish plant accounting for 70 GWh. Upon completion of the expansion, this will increase to 100 GWh.

This expansion has also drawn attention from the Polish government. The total investment amounts to 3.1 billion euros (approximately 4 trillion KRW), with 480 million euros (about 640 billion KRW) supported by the European Investment Bank (EIB). Notably, the employment scale is expected to reach 9,500 people. Once the fourth phase of expansion is completed, it is anticipated to satisfy about 60% of the current European battery demand.

Meanwhile, Europe is experiencing a surge in electric vehicle demand due to Green New Deal policy funds and carbon dioxide regulations. According to the global electric vehicle research firm EV Volumes, Europe sold 1.4 million electric vehicles last year, marking a 137% growth compared to the previous year. For the first time since 2015, this surpassed China’s sales of new energy vehicles (NEVs). As the European electric vehicle market rapidly grows, competition among battery manufacturers is expected to intensify further.