SEOUL :South Korean battery maker LG Energy Solution Ltd (LGES), a major supplier to U.S. carmakers including Tesla, is reassessing a $1.3 billion investment plan for a Arizona factory citing “unprecedented” economic conditions.
News that South Korea’s biggest battery maker is reviewing the plan, unveiled only three months ago, knocked LGES shares down 4.6 per cent on Wednesday. It comes as more firms review business plans, fearing a drop in consumer demand amid roaring U.S. inflation mainly caused by global supply chain disruption.
Tesla is cutting 10 per cent of salaried staff and pausing hiring worldwide, and its Chief Executive Elon Musk predicted last week a U.S. recession was more likely than not.
LEGS said in a statement it was currently reviewing various investment options due to the “unprecedented economic conditions and investment circumstances in the United States.”
It did not mention the Arizona plant, but an LGES…