LG Energy Solution pauses EV investments due to uncertainty

The president of LG Energy Solution, a key battery partner for General Motors, has stated that aiming for 50% electric vehicle (EV) sales in the U.S. by 2035 is ambitious. Investments in the EV industry are currently on hold due to uncertainty in federal policies. Two years ago, GM targeted 100% EV sales, and President Biden's administration set a goal for 50% EV market share by 2030. However, issues such as high EV prices, limited charging infrastructure, and changes in government policies have created obstacles to achieving these goals. LG's Bob Lee mentioned that tariffs on vehicles and parts from Canada and Mexico, effective April 2, have made companies hesitant to invest. While the U.S. has the capacity for EV production, key minerals and materials needed for battery manufacturing still need to be secured. Despite these challenges, sales of EVs are gradually increasing. Last year, 1.3 million EVs were sold, making up about 8.2% of all new vehicle sales. Lee forecasted that by 2030, this could rise to a 33% share. LG Energy Solution is actively working on eight battery plants in the U.S. and is also pursuing a battery plant from GM in Lansing. Besides manufacturing, Lee highlighted the importance of federal incentives for battery production and suggested creating EV-exclusive zones in Detroit to promote innovation. As the company navigates the complexities of the market, it is also looking into enhancing charging networks to boost EV adoption. Lee emphasized the need for proactive discussions about electrification and battery technology in the U.S.