According to the latest report, LG Energy Solution, SK On, and Samsung SDI will receive at least 2.1 trillion won in subsidies to help them build batteries in North America factories. The subsidy, including tax incentives, will be distributed to three companies, LG New Energy, SK On, and Samsung SDI. Among them, LG New Energy will invest 10 trillion won to build 6 battery factories in North America, so it will receive more than 1 trillion won in subsidies.
JOIN TIP3X ON TELEGRAM
The six plants LG New Energy has invested in and built in North America are two independent plants in Michigan and Arizona, a joint venture plant in Ontario and Stellantis, and three joint ventures with General Motors in Ohio, Tennessee, and Michigan.
Among them, LG New Energy invested a total of 1.6 trillion won in the Michigan plant and received 189 million US dollars in incentives from the state government. The plant jointly established by General Motors and LG New Energy in Michigan received a subsidy of $600 million, so LG New Energy will also receive part of the $600 million.
SK On invested a total of 8.1 trillion won in the construction of battery factories in North America, of which 3 trillion won was used for two factories in Georgia, and 5.1 trillion won. The company did not disclose the specific amount of the subsidy it received but said one of the reasons it built the factory was the preferential policies proposed by the state government. For example, in Georgia, SK On enjoys tax incentives such as property tax relief and land rent reduction.
Samsung SDI and Stellantis have formed a battery cell module joint venture in Kokomo, Indiana, in which the two companies are expected to invest $2.5 billion. The two companies are currently negotiating subsidies with the state government, such as tax cuts and free land use. Some experts said that Samsung SDI will get preferential policies in the negotiations because Stellantis has established a relationship of trust with the state government.
