GM and LG Chem will reportedly announce Tennessee battery factory on Friday

85
GM and LG Chem
GM and LG Chem will reportedly announce Tennessee battery factory on Friday

GM and LG Chem will reportedly announce Tennessee battery factory on Friday

On Friday, General Motors and LG Chem are expected to announce a new $2.3 billion battery factory to be located in Spring Hill, Tennessee, say reports from NikkeiReuters, and AP. It would be the second US battery joint venture for the American and South Korean giants, after the pair first announced a $2.3 billion battery cell manufacturing plant in Lordstown, Ohio back in 2019.

The Spring Hill batteries will be used for the Cadillac Lyriq electric SUV, say sources speaking to Reuters. GM already announced that Lyriq will be powered by GM’s new scalable battery architecture called Ultium. Batteries based on Ultium would offer power ranging from 50 to 200 kWh that could allow for a driving range of 400 miles or more. The Cadillac Lyriq will be assembled at a Spring Hill plant starting next year.

GM grew to be the largest automaker in North America on the back of combustion engines. Now it needs to ramp up production of electric vehicles in order to become a carbon neutral company by the year 2040, and meet its goal to halt sales of light-duty diesel and gasoline vehicles by 2035. Having a ready supply of batteries is therefore a fundamental concern for GM’s future. The company had already vowed to spend $27 billion on the development and production of 30 new electric vehicles by 2025 and even redesigned its logo to look more like an electrical plug.

GM and LG Chem will reportedly announce Tennessee battery factory on Friday

General Motors Co (GM.N) and South Korean joint-venture partner LG Chem Ltd (051910.KS) will announce a second U.S. battery cell manufacturing plant on Friday, revealing plans for a $2.3 billion factory in Spring Hill, Tennessee, three people familiar with the matter said.

The plant will use a different, more cost-effective battery chemistry than the one the companies will offer from the joint-venture plant they are building in Lordstown, Ohio, the sources said on Wednesday.

The battery will be for the Cadillac Lyriq electric crossover vehicle that GM will begin building at its nearby Spring Hill assembly plant next year, the sources said.

The timing of the Tennessee battery plant’s opening is unclear, but there will be a period when the battery is supplied for the Lyriq by another LG facility until the Tennessee plant opens and it will not come from Lordstown, one of the sources said.

GM would not confirm the details and declined further comment, and a spokesman for LG did not have an immediate comment. A Tennessee economic development spokeswoman also declined to comment.

The No. 1 U.S. automaker previously said it was exploring the feasibility of another U.S. battery cell plant with LG’s battery unit, LG Energy Solution, via its Ultium Cells LLC joint venture. read more

Sources previously told Reuters that GM and LG Chem were in advanced talks with Tennessee officials, and that the plant there would be similar in scope to the $2.3 billion Lordstown plant.

GM said in October it would invest $2 billion in Spring Hill to build EVs. The Detroit automaker said last year it was investing $27 billion in electric and autonomous vehicles over the next five years.

Sources previously said GM would need more battery plants beyond the Tennessee one to meet aggressive EV targets. GM has set a target in January of halting sales of light-duty gasoline and diesel-powered vehicles by 2035. read more

LG Energy said last month it planned to invest more than $4.5 billion in U.S. battery production over the next four years, including plans to build at least two new plants. read more

LG had been embroiled in a high-profile dispute with rival South Korean firm SK Innovation (096770.KS) in the United States after LG alleged SK stole trade secrets, but the companies settled that and other disputes with SK agreeing to pay $1.8 billion to LG.

Verizon to launch 5G internet for businesses in 21 U.S. cities

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here