LG Energy Solution (LGES) said in a conference call Jan. 27 it is currently engaged in “active discussions” with EV companies to provide batteries from its planned factory in Arizona.
While the company did not provide further details about its discussions with EV manufacturers, LGES said it is reviewing investments in building the new Arizona battery plant, as noted in a Reuters report.
LGES, which supplies batteries to EV makers like Tesla and Lucid, had a successful 2022. The battery maker posted $20.7 billion in consolidated revenue and $974 million in operating profit. The company is also aiming to see a 25% to 30% increase in annual revenue and more than 50% increase in capital expenditure in 2023.
LGES CFO Chang Sil Lee cited the rising demand for electric vehicles as a significant driver for the battery sector. Lee said LGES’ performance in 2022 was due in no small part to economies of scale and other cost optimizations.
“A record-high annual revenue was made possible, as battery shipment has increased across all product lineups in our proactive response to the increased demands for EVs and power grid energy storage systems (ESS)… Thanks to economies of scale led by sales growth, cost saving achieved through improving productivity, and expanding price-competitive metal sourcing, annual operating profit has also shown a significant growth compared to the previous year,” Lee said.
LGES is steadily becoming one of the key players in the growing EV sector. It has been expanding its relationships with car manufacturers throughout the year by beginning production at the GM Ultium Cells facility in Ohio and announcing new partnerships with Stellantis and Honda. The company now intends to increase its worldwide production capacity to 300 GWh by the end of the year.