According to BUSINESSKOREA, LG Energy Solution, SK On and Samsung SDI will receive at least 2.1 trillion won (10.92 billion yuan) in subsidies to help them build battery plants in North America, IT House reported on July 26.
The subsidies, including tax breaks, will be granted to LG New Energy, SK On and Samsung SDI, respectively. LG New Energy will invest 10 trillion won (about 52 billion yuan) to build six battery plants in North America, so it will receive more than 1 trillion won (about 5.2 billion yuan) in subsidies.
The six plants LG New Energy is investing in in North America are two separate plants in Michigan and Arizona, a joint venture with Stellantis in Ontario, and three joint venture plants with General Motors in Ohio, Tennessee and Michigan.
LG New Energy invested a total of 1.6 trillion won (approximately $8.32 billion) in the Michigan plant and received $189 million (approximately $1.276 billion) in incentives from the state government. LG New Energy will also receive a portion of the $600 million ($4.053 billion) in subsidies that GM and LG New Energy received for their joint venture plant in Michigan.
SK On has invested a total of 8.1 trillion won (about 42.1 billion yuan) in the construction of battery plants in North America, with 3 trillion won (about 15.6 billion yuan) going to two plants in Georgia and 5.1 trillion won (about 26.5 billion yuan) going to Blue Oval SK. The company did not disclose the exact amount of subsidies it received, but has said that one of the reasons it built the plants One of the reasons it built the plants was the incentives offered by the state government. In Georgia, for example, SK On enjoys tax incentives such as reduced property taxes and lower land rents.
Samsung SDI and Stellantis have formed a battery cell module joint venture in Kokomo, Indiana, where the companies expect to invest $2.5 billion (about $16.8 billion). The two companies are currently negotiating with the state government on subsidy policies, such as tax breaks and free land use. Some experts say that Samsung SDI will get preferential policies in the negotiations, as Stellantis has already established a relationship of trust with the state government.
Earlier today, there is news that LG New Energy will temporarily stop the development of prismatic batteries and focus on the existing pouch and cylindrical batteries.