GM and LG Chem to Open Second $2.3B Battery Plant

GM and LG Chem Expand U.S. Battery Production

General Motors (GM) and LG Chem jointly announced on Friday their intention to construct a second U.S. battery cell manufacturing plant. This new facility, representing a $2.3 billion investment, will be located in Spring Hill, Tennessee.

The plant’s primary function will be to provide GM with the battery cells necessary to support the production of the 30 electric vehicle models the company intends to introduce by the middle of the decade.

Construction and Job Creation

According to GM’s CEO and Chairman, Mary Barra, construction of the facility will commence without delay. The battery factory is projected to be fully operational by the end of 2023, generating approximately 1,300 employment opportunities.

The new plant is strategically situated adjacent to GM’s existing manufacturing complex in Spring Hill.

Production Capacity and Comparison

Upon full operation, the combined output of the two joint venture battery factories will exceed 70 gigawatt hours (GWh). Jong Hyun Kim, CEO of LG Chem Energy Solutions, highlighted that this capacity is double that of Tesla’s Gigafactory in Nevada.

For context, Tesla’s Nevada factory, a collaborative effort with Panasonic, currently boasts a 35 GWh production capacity.

Ultium Platform and Battery Technology

GM’s transition to electric vehicles is fundamentally based on its Ultium platform. The Ultium lithium-ion batteries, destined for production at the Spring Hill facility, are central to this strategy.

These advanced batteries will incorporate reduced amounts of cobalt, a relatively scarce earth material. Furthermore, they will utilize a standardized cell design, enabling more efficient configuration for increased energy density and reduced size compared to existing GM battery systems, as stated by Barra.

Benefits for Consumers

“This adaptability allows us to integrate greater battery capacity into a broader spectrum of vehicles, and at a more accessible price point for consumers,” Barra explained.

“It represents a genuine breakthrough in electric vehicle technology, poised to broaden access to EV ownership for millions, positively impacting lives and the world at large.”

A Long-Standing Partnership

GM has maintained a relationship with LG Chem as a supplier of lithium-ion batteries and electronic components for over ten years, dating back to 2009.

This collaboration was strengthened with the development and subsequent launch of the Chevrolet Bolt EV. In 2019, GM and LG Chem established a joint venture to facilitate the large-scale production of battery cells as GM accelerated its shift towards electric vehicles.

The companies initially committed to a combined investment of up to $2.3 billion in the new venture, with plans to construct a battery cell assembly plant on a greenfield site in the Lordstown area of Northeast Ohio, creating over 1,100 jobs.

Ultium Cells LLC – Lordstown Facility

Steel construction of the Ultium Cells LLC battery cell manufacturing facility in Lordstown began in July 2020. This nearly 3-million-square-foot factory is designed for the mass production of Ultium battery cells and packs.

The Lordstown facility will have an annual production capacity of 30 GWh.

Applications Across GM Brands

The batteries manufactured at the Lordstown plant, coupled with GM’s electric architecture, will be integrated into a diverse range of vehicles across the Cadillac, Buick, Chevrolet, and GMC brands.

They will also power the Cruise Origin autonomous shuttle, first unveiled in January 2020. The Cadillac Lyriq EV and the all-electric GMC Hummer, slated for release in the fourth quarter of 2021, will utilize the Ultium battery system.

GM is scheduled to unveil the Lyriq at a virtual event on August 6.

Ultium Architecture – Versatility and Scalability

The “Ultium” modular architecture, encompassing both the battery and related components, offers 19 distinct battery and drive unit configurations.

It supports both 400-volt and 800-volt systems, with energy storage capacities ranging from 50 kWh to 200 kWh, and accommodates front, rear, and all-wheel drive layouts.

At the core of this new architecture are the large-format pouch battery cells, which will be manufactured at the newly established facility.