LG Energy Solution has signed a debt guarantee worth 5.6 trillion KRW for its subsidiary in Michigan, USA.
On the 18th, LG Energy Solution announced through a public disclosure that "it has decided to guarantee the acquisition payment that will occur if its subsidiary LG Energy Solution Michigan acquires Plant 3 from Ultium Cells."
LG Energy Solution plans to secure 100% ownership of Plant 3 of the joint venture Ultium Cells with General Motors (GM) and use it as investment funds for energy storage systems (ESS). Ultium Cells is a joint venture (JV) between LG Energy Solution and GM, and Plant 3 is being constructed in Lansing, Michigan.
The amount guaranteed for the debt is 3.6027 trillion KRW. LG Energy Solution explained, "The Michigan subsidiary plans to acquire Plant 3 to respond to the demand for electric vehicles in North America."
LG Energy Solution also announced that it has decided to guarantee a debt of 2.0319 trillion KRW for investment in ESS production facilities at its Holland plant in Michigan. This is intended to accelerate local production as the United States is expected to increase tariffs on Chinese-made ESS batteries starting in 2026.
LG Energy Solution stated, "We plan to utilize the expansion site within the Michigan Holland plant for the ESS line" and "mass production is expected to be fully underway from the second half of this year."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
