LG Chem will invest US$500 million more into its factory at Nanjing, China.
The South Korean energy giant held an investment ceremony with officials of Nanjing city at Yancheng during a local tradeshow.
LG Chem currently operates two factories at Nanjing. The second factory is being expanded from its second stage investment.
LG’s investments into the factories will last until 2022. A total of 1.977 trillion won will be spent.
The company has spent 892.7 billion won up to the first half of 2020 so far.
The additional US$500 million will likely expand LG Chem’s total investment into its Nanjing factories to over 2 trillion won.
A LG Chem spokesperson said however that the total investment volume won’t exceed its previous estimate by much.
The additional spending is likely done to increase its supply to Tesla. The US electric vehicle company is planning to export Model 3s made in China to Europe starting this month. It will likely use more LG Chem batteries now.
LG Electronics will also make an additional investment of US$300 million to its auto-component factory at Nanjing. The factory will produce car motors, chargers, converters, displays, radars and other components.