LGES raises annual revenue target by 15 to 22 trln won
Looking into new production site in Europe
Says it is still reviewing Arizona investment
Plans to expand LFP battery production in China, U.S.

SEOUL, July 27 Reuters Tesla supplier LG Energy Solution Ltd LGES said on Wednesday it was looking at sites in Europe for a new battery plant and would ramp up production in Asia outside of China, where COVID lockdowns and rising costs were weighing on profits.

The South Korean firm, which supplies electric vehicle EV batteries to automakers including General Motors Co, Ford Motor Co and Volkswagen AG, said it was responding to increased demand in Europe for cylindrical batteries the type used by Lucid and Tesla Inc.

The company did not say how much it planned to invest in the new European plant, or give a timeframe for construction.

LGES added that it would use its Asia production sites outside of South Korea and China, such as its battery joint venture with Hyundai Motor Co in Indonesia, to better respond to customer demand.

With the easing chip shortage and auto customers39; plans to launch new models as well as solid EV demand among customers, we expect solid demand for pouch and cylindrical EV batteries in the second half of this year, Chief Financial Officer Lee Chang Sil said in a postearnings conference call.

Analysts are divided on the nearterm outlook for EV demand as inflation and interest rates surge, while snarled supply chains and China39;s COVID19…