LG Reviews $1.3 Billion Arizona Battery Plant on Rising Costs

LG Energy Solution Ltd., the world’s second-largest electric-car battery maker, is reviewing plans to build a $1.3 billion plant in Arizona as surging materials prices inflate the cost of the project.

Given “unprecedented economic conditions and investment circumstances” in the US, LG Energy is currently reviewing various investment options, the company said in response to a Chosun Ilbo report that it had decided to reconsider the project as construction costs have increased and amid concerns over weakening battery demand.