South Korean battery maker LG Energy Solution will invest 4 trillion won ($3.1 billion) in expanding battery manufacturing facilities at its Ochang plants in Cheongju, North Chungcheong Province, through 2026, the company announced Monday.
Representatives from the battery maker, the local government of North Chungcheong Province and the city of Chungju signed the investment agreement earlier in the day.
The investment will go toward expanding and upgrading the cylindrical battery production lines, and building additional infrastructures such as research and development facilities at the Ochang plants, the firm said.
It will also look to maximize productivity at the new assembly lines by introducing smart factory features such as remote support, intellectualization of manufacturing and automation of logistics.
The investment agreement is projected to create about 1,800 new jobs over the next five years, according to officials.
LG Energy Solution vowed to stimulate the local economy by buying manufacturing materials and equipment from regional businesses and encouraging their participation in the process of carrying out the investment.