Multi-billion-dollar JV to give GM independence on battery supply chain

Multi-billion-dollar JV to give GM independence on battery supply chain

December 10, 2019
Press Release: General Motors

General Motors and LG Chem team up to advance toward an all-electric future

General Motors and LG Chem have announced plans to mass-produce battery cells for future battery-electric vehicles. The companies will invest up to a total of US$2.3 billion through a new, equally owned joint venture company.

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 state-of-the art plant will use the most advanced manufacturing processes all 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.

This announcement, along with the recent sale of GM’s manufacturing complex in Lordstown, Ohio to Lordstown Motors Corp for the production of battery-electric trucks, positions Northeast Ohio and the Mahoning Valley as a major hub for technology and electric vehicle manufacturing.

“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 USA, 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 an all-new battery-electric truck coming in the fall of 2021.

“This joint venture 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 and CEO Hak-Cheol Shin. “Our longstanding history with General Motors has proven our collective expertise in this space, and we look forward to continuing this drive for zero emissions.”

This investment builds on GM’s US$28 million investment in its Warren, Michigan battery lab announced late last year. It is also in addition to manufacturing investments in Ohio announced earlier this year totalling approximately US$700 million that will create about 450 jobs in Toledo, Parma and Brookville, Ohio.

Groundbreaking is expected to take place in mid-2020.

E-Waste World Conference & Expo 2020 takes place from Wednesday 18 November to Thursday 19 November at the Kap Europa, Frankfurt Messe, Germany. To register for this highly focused, solutions-driven event, please click here. For sponsorship and exhibition opportunities, please email peter@trans-globalevents.com

Pin It on Pinterest

Share This