LG Energy Solution is reconsidering plans to build a W1.7 trillion rechargeable battery plant in the U.S. state of Arizona (US$1=W1,283).

The plans, announced with much fanfare, now look hasty as rising inflation is expected to push up investment costs while demand for electric cars will decrease in a global recession.

"Economic conditions are worsening while investment costs have surged, so we're thoroughly reviewing the investment," an LGES insider said

The company announced plans in March to invest W6.5 trillion in North America, including the W1.7 trillion battery plant in Queen Creek, Arizona capable of manufacturing 11GWh of cylindrical batteries. Ground was to have been broken in the second quarter of this year with a view to completion by 2024.

LGES already bought the 2.63 million sq.m plot for US$84.4 million in April of this year and obtained authorization from local authorities last month to build the plant there. 

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