General Motors has confirmed an earlier report it would team up with LG Chem to mass-produce battery cells for future battery-electric vehicles.
Together, the companies will spend up to US$2.3bn through a new, equally owned joint venture company.
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The JV will establish a battery cell assembly plant on a greenfield manufacturing site in the Lordstown area of Northeast Ohio that will create more than 1,100 new jobs.
The plant manufacturing processes will all be under one roof to produce cells efficiently, with little waste, and will benefit from strong economies of scale throughout the value chain. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials.
The collaboration also includes a joint development agreement that brings together two leaders in battery science to develop and produce advanced battery technologies, with the goal of reducing battery costs to industry leading levels.
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This announcement, along with the recent sale of GM’s manufacturing complex in Lordstown, Ohio to Lordstown Motors for the production of battery-electric trucks, positions Northeast Ohio and the Mahoning Valley as a major hub for technology and electric vehicle manufacturing.
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By GlobalData“With this investment, Ohio and its highly capable 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. We look forward to collaborating with LG Chem on future cell technologies that will continue to improve the value we deliver to our customers.”
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 a new battery electric truck coming in autumn 2021.
“Our joint venture with the No. 1 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.
“Our long-standing history with General Motors has proven our collective expertise in this space, and we look forward to continuing this drive for zero emissions.”
Groundbreaking is expected to take place in mid-2020.
