General Motors and LG Chem have announced plans to mass-produce battery cells for future battery-electric vehicles.

Together, the companies will invest up to a total of US$2.3bn through a new, equally-owned joint venture company.

The JV will establish a battery cell assembly plant on a greenfield manufacturing site in the Lordstown area of Northeast Ohio , which will create more than 1,100 new jobs.

“With this investment, Ohio and its workforce will play a key role in our journey toward a world with zero emissions,” said GM chairman and CEO, Mary Barra. “Combining our manufacturing expertise with LG Chem’s leading battery-cell technology will help accelerate our pursuit of an all-electric future.”

In addition to vertically integrating the manufacturing of battery cells in the US, LG Chem will gain access to an experienced workforce. It will also benefit from a dedicated production stream of future EVs from GM’s next generation of battery-electric vehicles, including an all-new battery-electric truck coming in the autumn of 2021.

“Our joint venture with the number one American automaker will further prepare us for the anticipated growth of the North American EV market, while giving us insights into the broader EV ecosystem,” said LG Chem, vice chairman & CEO, Hak-Cheol Shin.

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The news builds on GM’s US$28m investment in its Warren, Michigan, battery lab announced late last year. It is also in addition to manufacturing investments in Ohio announced earlier this year totalling around US$700m, which will create about 450 jobs in Toledo, Parma and Brookville, Ohio.

Groundbreaking is expected to take place in mid-2020.