LG Chem is set to open the largest lithium-ion battery factory in Europe next year as it prepares for an increase in demand for mass-produced electric vehicles.
Reuters reports that the factory will be located in Poland, near the southwestern city of Wroclaw with the South Korean chemical company to invest $1.63 billion to make it a reality.
In a statement released late last week, LG Chem said the facility will build battery packs for up to 100,000 EVs annually and confirmed that it will supply batteries to a number of large carmakers.
“The company has chosen Poland as the most competitive location for production to satisfy the needs of European and global car producers,” LG Chem vice president Chang-Beom Kang said.
When battery production at the facility commences, the lithium and other raw materials needed will be imported from Asia. However, LG Chem wants to ultimately use Polish suppliers for these components.
Despite being Europe’s largest battery factory, the facility will pale in comparison to Tesla’s Gigafactory. In fact, Reuters estimates that it will have only 10 per cent the production capacity.
Note: Tesla Gigafactory pictured below