LG Energy Solution(LGES) is reconsidering its plan to build a new battery plant in the U.S. amid global inflation and the sharp drop in the Korean currency against the dollar.

An official from the company told KBS on Wednesday that LG is thoroughly reassessing the timing, scale and specifics of the investment in the state of Arizona due to a sharp increase in costs.

The company expects to come to a decision in the next two months or so.

In March, the world's second-largest battery maker publicized a one-point-seven trillion-won plan to build what was supposed to be its second standalone electric vehicle battery plant in the U.S.

The project was perceived to be the next step in the company’s North American expansion with the production of cylindrical batteries used in electric vehicles and power tools, which are seeing increased demand.