Doubtful that they will have huge demand problem. They are still expanding the plant 5x output while making it more automated and even then it’s only good for ~300K BEVs/year. The layoffs and reduced staff are due to on going retooling and expected increased automation nothing more.
Sure could argue LG might have bit of a intermediate customer problem with their biggest NA customers having failed to gain significant EV market share in NA. Same deal as with the second plant in Kentucky (the joint venture with Ford). One good contract and they are back to being undersized, but the chances are when the expansion is finished they will be fine as is.
And that’s without considering non-BEV usages like you mentioned. It’s simply still too small and the projected future lithium battery demand is too high for this to fail even though certain automakers might slip up I have no doubt that LG will find uses for that capacity with ease. Its a FUD article.
do they only produce batteries for EVs? Because if they produce batteries for other shit and sector, they can shift around personnel
A lot of the time, they do give employees that option but the employees usually can’t just move to a completely different area.
Doubtful that they will have huge demand problem. They are still expanding the plant 5x output while making it more automated and even then it’s only good for ~300K BEVs/year. The layoffs and reduced staff are due to on going retooling and expected increased automation nothing more.
Sure could argue LG might have bit of a intermediate customer problem with their biggest NA customers having failed to gain significant EV market share in NA. Same deal as with the second plant in Kentucky (the joint venture with Ford). One good contract and they are back to being undersized, but the chances are when the expansion is finished they will be fine as is.
And that’s without considering non-BEV usages like you mentioned. It’s simply still too small and the projected future lithium battery demand is too high for this to fail even though certain automakers might slip up I have no doubt that LG will find uses for that capacity with ease. Its a FUD article.
It’s LG’s statement, not FT’s:
LG is laying off works and reducing capacity for to “automakers realigning the speed of the EV transition.”