GM and LG Chem Team Up on battery development and production
General Motors and Korean chemical company LG Chem have announced plans to mass-produce battery cells for future electric vehicles (EV). Together, the companies will invest up to a total of $2.3 billion ($AU3.36 billion) through a new, equally owned joint venture (JV) company.
The JV will establish a battery cell assembly plant on a greenfield manufacturing site in Ohio, U.S., that will create more than 1,100 new jobs.
The companies say the plant will use advanced manufacturing processes to produce cells efficiently and will benefit from strong economies of scale throughout the value chain. The plant will be flexible and able to adapt to ongoing advances in technology and materials. The collaboration also includes an agreement with the goal of reducing battery costs to industry-leading levels.
“Combining our manufacturing expertise with LG Chem’s leading battery-cell technology will help accelerate our pursuit of an all-electric future,” said GM Chairman and CEO Mary Barra. “We look forward to collaborating with LG Chem on future cell technologies that will continue to improve the value we deliver to our customers.”
LG Chem says it will gain access to an experienced workforce and 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 late 2021.
“Our joint venture with the No.1 American automaker 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 & CEO Hak-Cheol Shin. “Our long-standing history with General Motors has proven our collective expertise in this space, and we look forward to continuing this drive for zero emissions.”
Ground breaking on the new plant is expected to take place in mid-2020.
19 Dec 2019