European Investment Bank and LG Chem team up to create over 1,000 jobs with new electric car battery factory
A 1.5 billion EUR electric vehicle battery factory is being built in Wrocław and will create 1,800 jobs.
The new LG Chem factory will manufacture advanced lithium-ion cells and batteries for battery-powered electric vehicles (BEVs).
The gigafactory will have an annual production capacity of over 35 GWh, which can potentially power more than 500,000 zero-emission electric cars per year.
The investment is being covered by LG Chem, private investors and the European Investment Bank, who have lent 480 million EUR for the project.
Teresa Czerwinska, Vice-President of the European Investment Bank, said: “This first EIB operation with LG Chem Wrocław Energy is significant for many reasons. It helps Europe to build a critical mass in electric vehicle battery production at a pivotal time of electric vehicle commercialisation in Europe; it promotes a shift to electromobility and to a greener automotive industry; and it helps create new qualified jobs in an industrial region in transition to a new economic model.
“Today’s operation proves that with the right partners and the right projects in place we can combine cohesion objectives with innovation and strong climate action.”
LG Chem has operated on the Polish market since 2016 and already has a factory close to Wrocław.
CFO Jeong Joon Ha said: “The loan provides our company with the resources to create a competitive battery value chain in Europe and Poland. Furthermore, it enables the LG Chem Group to take the lead in terms of growth of the European battery market and community development.”
Last year the EIB invested 5.4 billion EUR into Poland.