LG Energy Solution said on Wednesday that it plans to reevaluate its plan to build a battery plant in Arizona.
The company said it was reevaluating when it will invest and how much due to the increased amount needed from the economic downturn.
LG Energy Solution said nothing was finalized at the current time.
The South Korean battery maker had announced the plan to build the plant back in March.
It said it at the time that it will spend 1.7 trillion won for an annual capacity of 11GWh. Construction was originally set to begin during the second quarter with production starting during the second half of 2024. The plant was planned to make cylinder batteries.
Sources said due to inflation, the expected cost would exceed 2 trillion won to build the plant.
LG Energy Solution was also in talks with a major customer on battery unit prices, they added.
Meanwhile, its joint venture with General Motors, Ultium Cells, is expected to continue its spending plan without hitch.
It had announced three factories so far and is in talks of a fourth. LG Energy Solution’s joint venture with Stellantis is also expected to spend 4.8 trillion won in Ontario to build battery factories.