It is sales that are plummeting at Europe's largest manufacturer of batteries, which is now causing LG Energy to consider dropping electric car batteries altogether.
– We are considering developing LG Energy Solution Wrocław towards energy storage, says Joanna Silska, spokesperson for LG Energy Solution, to Bloomberg .
The statement comes after it is clear that LG Energy, which has Europe's largest battery factory, is in an acute crisis due to failing sales.
The factory, formerly known as LG Chem, employs 6,600 people in Poland. In order for the bosses to continue to have enough work for them all, LG may be forced away from the production of batteries for electric cars.
The demand is simply not great enough. And the demand that is there keeps falling. That is why LG is now considering rebuilding the entire factory so that batteries can be built to store energy instead.
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– Energy transformation is decisive and inevitable for the European economies. We are therefore investigating the potential for investments in new production capacity, says the company's spokesperson Joanna Silska.
Today, the factory that Joanna Silska speaks on behalf of can produce batteries for 100,000 electric cars per year. But apparently there is no need for that.
Conversely, the LG factory in Poland is not the only European battery factory that is currently looking down at very empty order books.
BMW has just torn up a contract worth over 14 billion kroner with another manufacturer, and now Volkswagen is considering doing the same. Something that could mean that the company will never build batteries for electric cars. Read more about it here .
Outside of Europe, there are also huge problems. After 10 quarters with large losses, the world's fourth largest battery manufacturer is now so much on its knees that the director has declared a state of emergency. Read more about it here .
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