According to the South Korean media reports, LG Chem will invest an additional $500 million in its lithium-ion battery factories in Nanjing.

The company actually has two facilities in Nanjing. The second one (envisioned for expansion) produces cylindrical batteries (18650 type) cells for the Tesla Model 3, produced at the nearby Tesla Giga Shanghai. 

We guess that with the increased volume of MIC Model 3 and the upcoming MIC Model Y, LG Chem is simply installing additional production lines.

In total, LG Chem’s investment in Nanjing will exceed 2 trillion won ($1.8 billion) and should be completed by the end of 2022. Half of the amount was already spent by the end of June 2020.

Another interesting bit of news is the $300 million investment in Nanjing by LG Electronics, which intends to produce more EV parts like electric motors, on-board chargers, power electronics (inverters and DC/DC converters we guess), displays, radars and other components.