SEOUL -- Tesla supplier LG Energy Solution said it is looking at sites in Europe for a new battery plant and would ramp up production in Asia outside of China, where COVID-19 lockdowns and rising costs were weighing on profits.
The South Korean company, which supplies electric vehicle batteries to automakers including General Motors, Ford and Volkswagen Group, said it was responding to increased demand in Europe for cylindrical batteries - the type used by Lucid and Tesla.
The company did not say how much it planned to invest in the new European plant or give a timeframe for construction.
LGES added that it would use its Asia production sites outside of South Korea and China, such as its battery joint venture with Hyundai in Indonesia, to better respond to customer demand.
"With the easing chip shortage and auto customers' plans to launch new models as well as solid EV demand among customers, we expect solid demand for pouch and cylindrical EV batteries in the second half of this year," Chief Financial Officer Lee Chang Sil said in a post-earnings conference call.