Nanjing Jiangning Investment Promotion Team Contract News
Attracted 9 Foreign Investment Projects Worth a Total of 1.8 Billion USD
LG Energy Solution "No Confirmation on Investment Details or Amount"
According to local Chinese media, the Jiangning Investment Promotion Team of Nanjing City, Jiangsu Province in eastern China, has attracted nine foreign investment projects totaling $1.767 billion (approximately 2.38 trillion KRW). Notably, among these projects, LG Energy Solution has announced its participation in a battery production project worth about $800 million, drawing significant attention.
On the 27th, Chinese media outlet Pengpai News reported, "Since the beginning of the year, global battery companies have been actively investing in China," adding, "The Jiangning Investment Promotion Team visited Sweden and South Korea and signed contracts for a total of nine foreign investment projects."
Officials are taking a commemorative photo at the investment agreement ceremony between LG Energy Solution and the Nanjing Jiangning Investment Promotion Delegation in China. (Photo by Pengpai News)
According to the report, the total scale of the nine projects amounts to $1.767 billion, with LG Energy Solution signing an investment contract worth approximately $800 million. Pengpai stated that LG Energy Solution will participate in production projects for power batteries and energy storage batteries.
LG Energy Solution established its presence in Binjiang Development Zone in August 2018, investing a total of $3.3 billion in battery production and sales, primarily supplying electric vehicle batteries to companies such as Volkswagen. Last year, LG Energy Solution signed an electric vehicle battery production contract with Binjiang Development Zone and General Motors (GM). Once the related factory is operational, it is expected to generate annual sales of 4 billion yuan (approximately 743.2 billion KRW).
Kim Dong-myung, President of LG Energy Solution, stated at the recent contract signing event, "The factory being built in Binjiang Development Zone will be the most advanced facility, equipped with the highest yield and efficiency," adding, "We will continue to invest in the Binjiang Development Zone business to expand and modernize the factory while maintaining efficiency."
LG Energy Solution was once the world’s leading electric vehicle battery company but has recently been overtaken by China’s CATL (Contemporary Amperex Technology Co. Limited). Last year, it also fell behind BYD, ranking third globally. According to energy market research firm SNE Research, CATL’s battery installation capacity is 259.7 GWh, ranking first worldwide, BYD recorded 111.4 GWh in second place, and LG Energy Solution followed with 95.8 GWh.
However, regarding the Pengpai report, LG Energy Solution stated that nothing has been finalized. A representative from LG Energy Solution said, "The information pertains to a non-binding MOU discussing future investment intentions," adding, "No decisions have been made regarding the investment details or amounts."
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