GM and LG Chem Explore Second US Battery Cell Plant

General Motors Considers Second U.S. Battery Plant

General Motors is currently evaluating the possibility of establishing a second U.S. facility for the production of battery cells. This potential expansion would be undertaken in collaboration with its joint venture partner, LG Chem, which is headquartered in Seoul, South Korea.

Expanding EV Production Capabilities

Should the project proceed, it will represent another significant investment in the automotive manufacturer’s growing range of electric vehicles. The existing joint venture, Ultium Cells LLC, is already constructing a $2.3 billion battery cell manufacturing plant in Lordstown, Ohio.

A decision regarding the new factory is anticipated in the first six months of 2021. According to a statement by GM spokesman Dan Flores to TechCrunch, specific locations are still under consideration. However, Tennessee is reportedly a leading candidate, as indicated by reporting in The Wall Street Journal.

Significant Investment in Electrification

GM has publicly stated ambitious goals for reducing carbon emissions and has committed substantial financial resources to achieve them. The company plans to introduce 30 new EV models globally across its various brands by 2025.

This initiative will be supported by a $27 billion investment in electrification and automated technology, representing a 35% increase over 2020 spending. GM aims to have a fully electric fleet by the mid-2030s.

“A commitment to an all-electric future necessitates a substantial supply of battery cells,” Flores explained.

Addressing Battery Supply Concerns

Flores refrained from commenting on the current shortage of battery cells, which has impacted EV manufacturers like Tesla and Nikola. President Joe Biden recently issued an executive order directing federal agencies to assess supply chain vulnerabilities for batteries, semiconductors, and other essential components.

This assessment will focus on dependencies on nations considered competitors. GM CEO Mary Barra highlighted the battery shortage as a key driver behind the company’s investment in its own battery cell manufacturing capabilities during a recent investor presentation.

She indicated that further announcements regarding the expansion of battery cell production are forthcoming. “Additional plans beyond those already announced are in development,” Barra stated.

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