GM and LG end plans for fourth U.S. battery cell plant as automaker seeks new partner


GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin at the automaker’s battery lab in Warren, Michigan, where the companies announced a new $2.6 billion joint venture on December 5, 2019.


DETROIT – General engines and LG Energy Solution have indefinitely suspended plans to build a fourth battery cell plant in the US as talks between the two sides recently ended without agreement, a person familiar with the plans confirmed to TBEN.

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The Detroit automaker is expected to go ahead with plans to build the plant, but is looking for another partner, according to the person who declined to be named because the talks are private.

“We’ve been very clear that our plan includes an investment in a fourth U.S. cell plant, but we’re not going to comment on speculation,” GM said in an emailed statement.

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The Wall Street Journal first reported that talks between GM and LG had stalled over the fourth plant, expected to be in Indiana. The newspaper said GM is in talks with at least one other battery supplier to proceed with the fourth US battery cell plant.

The break in talks comes after GM CEO Mary Barra and other executives said they have been on the verge of announcing details of the fourth plant for some time.

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GM and LG initially announced the joint venture in December 2019 for a $2.3 billion plant in Ohio, followed by other plants near GM operations in Michigan and Tennessee. Only the Ohio plant is currently in operation, with the others under construction. The joint venture is called Ultium Cells LLC.

This is an evolving story. Check back later for more information.


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