The joint venture between GM and LG Chem will create a battery cell assembly plant in the Lordstown … [+]
General Motors CEO Mary Barra today announced a 50-50 joint venture with LG Chem valued at $2.3 billion to produce lithium-ion battery cells in Ohio. The plant will be located in Lordstown, near the recently shuttered Cruze assembly plant. The new facility will supply batteries for several upcoming GM battery electric vehicles including a pickup truck that goes into production in late 2021.
GM and LG have been working together since 2008 during development of the first generation Chevrolet Volt. Since then GM has used LG battery cells in almost all of the plug-in vehicles it has produced since the production launch of the Volt in late 2010.
Reports of a battery joint venture first surfaced in early September during UAW contract talks. GM had proposed using the existing Lordstown plant but that facility has since been sold to startup Lordstown Motors. The plant will employ up to 1,100 jobs.
While the new facility will initially focus on supplying batteries for GM vehicles, Barra did not rule out eventually providing batteries to other OEMs as it makes sense for the joint venture to be a successful business. The new partnership will also include joint product development of cells and chemistry.
