LG, Northvolt Target Renewable Energy in Manufacturing
LG and Northvolt are expanding factories to support electric vehicle infrastructure, batteries, and the supply chain.
As the global emphasis on sustainable practices intensifies, the manufacturing sector is making significant changes in advancing renewable energy. Recently, major players have expanded their capabilities in renewable manufacturing, specifically in the electric vehicle (EV) space.
A Northvolt battery facility. Image used courtesy of Northvolt
While LG has added EV charging to its production lines, Northvolt will focus on battery materials for lithium-ion batteries.
LG's Foray Into EV Charger Manufacturing
In a strategic move signaling a major shift in the EV infrastructure landscape, LG Electronics has inaugurated its first U.S. EV charger manufacturing plant.
Strategically located in Fort Worth, Texas, the facility is LG's response to the growing call for more robust and widespread EV charging infrastructure. The 60,000-square-foot plant will initially focus on manufacturing 11 kW Level 2 AC chargers but will ultimately transition to 175 kW Level 3 DC chargers and 350 kW ultra-fast chargers. The facility will produce up to 12,000 units annually.
LG's EV charger manufacturing plant is expected to catalyze the growth of the local EV infrastructure, providing a boost to charging options. Whereas the country currently has fewer than 200,000 charging ports available, the Biden administration aims for 500,000 by 2030. LG hopes to capitalize on this opportunity and help the country reach its aggressive charging infrastructure goals.
Northvolt's Pioneering Green Loan and Battery Manufacturing
Northvolt, a major player in the lithium-ion battery sector, recently secured a $5 billion green loan for expanding its battery production facilities.
The funds will target Northvolt Ett, the company’s gigafactory in northern Sweden, specializing in cathode production and cell manufacturing. The expansion will also support the adjacent recycling plant, Revolt Ett. This facility offers a sustainable approach to battery manufacturing by recycling and recovering battery-grade metals. The process leads to overall battery manufacturing with a lower carbon footprint compared to using mined raw materials.
Northvolt Ett in northern Sweden. Image used courtesy of Northvolt
The significance of Northvolt's funding extends beyond its immediate financial implications. It represents a growing trend of green financing, where investments are increasingly channeled into projects that support environmental sustainability. Moreover, the expansion of Northvolt's battery production capabilities is poised to substantially impact the European battery market and beyond. It enhances Europe's position in the global battery industry, traditionally dominated by Asian manufacturers.
Northvolt’s green loan is the largest such ever raised in Europe.
Major Steps Toward Renewable Manufacturing
The recent developments by LG and Northvolt mark crucial steps in advancing renewable manufacturing globally. LG's establishment of an EV charger manufacturing facility in Texas, aimed at bolstering the EV infrastructure in the U.S., aligns with national goals to expand charging options significantly. On the other hand, Northvolt's securing of a record-breaking green loan for its gigafactory expansion in Sweden is a testament to the increasing importance of green financing and sustainable practices in manufacturing. Both these initiatives demonstrate a commitment to environmental sustainability and underscore an essential shift in the industry, with major implications for the future of EV infrastructure and the global battery market.
