LG New Energy called on the EU to reduce energy costs

[shelitaauto]

Source: Gasgoo

link hidden, please login to view

According to Bloomberg, South Korean battery manufacturer LG New Energy has called on the European Union to reduce energy costs and develop the EU battery industry amid fierce competition with China’s battery industry.

Image Source: LG New Energy

Due to weak global demand for electric vehicles, LG NEV’s plant near Wroclaw, Poland, has been running at about 50 percent capacity utilization since the beginning of this year.

 

LG New Energy revealed that at present, Chinese electric vehicle battery and electric vehicle manufacturers are expanding their influence in the European continent, while the European Union is also planning to implement stricter carbon emission regulations. Eu governments should therefore prioritize providing affordable electricity to key growth sectors, such as the manufacturing of electric vehicle batteries.

 

Yong Girl Lee, head of external relations at LG New Energy, said that if Poland wants to build an advanced battery industry, it needs to provide the industry with affordable electricity.

 

However, the Polish government prefers to insulate households, rather than industry, from high electricity and gas prices. Poland has one of the highest electricity prices in the European Union because of its reliance on coal-fired power, which also increases carbon emissions.

 

At present, LG New Energy is adjusting to the weakness of the electric vehicle market. The company plans to start producing more affordable lithium iron phosphate energy storage batteries from 2025 and LFP batteries for cars from 2026. Yong Girl Lee said that the capacity utilization rate of LG New Energy Poland plant will start to rise from the second half of next year, of which car battery production still accounts for the vast majority of the factory’s total output.

 

In 2023, exports from LG New Energy Polish plant accounted for 3% of Poland’s total exports. The plant will need to use about 1 terawatt hour of electricity per year, which can be purchased either through direct agreements with renewable energy producers or on the market.

 

LG New Energy Poland wants the Polish government to allow companies operating within its 14 special economic zones preferential access to affordable green energy, especially as electricity usage will grow with the rise of automation and the expansion of data storage.

 

If Poland cannot guarantee priority access to electricity for battery companies, then EU companies may face many difficulties in competing with Chinese companies. At the same time, the European Union is also working on new battery regulations that are expected to impose stricter carbon emission requirements on battery manufacturers.

 

“Chinese battery manufacturers are globally competitive, which is why the EU needs to act quickly,” Lee said. The battery industry is very important and strategic, and the Polish government needs to think about how to protect it.”