GM and LG Energy Solution build second US battery plant in Tennessee

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The planned 2.8 million square foot plant, slated to open in late 2023, will employ 1,300 people and have a production capacity of around 35 gigawatt hours.


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The plant’s capacity would allow it to supply batteries for more than 500,000 electric vehicles per year.

General Motors Co and South Korean joint venture partner LG Energy Solution announced Friday that they will build a second battery cell manufacturing plant in the United States, revealing plans for a $ 2.3 billion plant in Spring Hill, Tennessee. The planned 2.8 million square foot plant, slated to open in late 2023, will employ 1,300 people and have a production capacity of approximately 35 gigawatt hours, similar to the joint venture Ultium Cells plant of the companies in Lordstown, Ohio, as they move to meet the growing market demand for electric vehicles. The plant’s capacity would allow it to supply batteries for more than 500,000 electric vehicles per year.

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GM and LG Energy Solution to use different, less expensive battery chemistry in Tennessee

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“The addition of our second brand new Ultium battery cell plant in the United States with our joint venture partner LG Energy Solution is another major step in our transition to a fully electric future,” said Mary Barra, Managing Director of GM.

The United Auto Workers on Friday called on GM to ensure the new plant has workers represented by unions, which GM officials said would be determined by employees.

LG Chem said in a regulatory filing that its LG Energy Solution unit will invest $ 933.5 million in the plant between this year and 2023.

GM and LG Energy Solution will use different and cheaper battery chemistry in Tennessee than what will be used at the Lordstown plant that will open next year, sources previously told Reuters.

Sources said the No.1 U.S. automaker will need more battery factories beyond Tennessee to meet aggressive EV targets, including projected sales of more than one million EVs in the world by 2025. GM’s longer-term goal includes stopping sales of light gasoline and diesel. -powered vehicles by 2035.

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Most battery manufacturing is currently concentrated in China and Korea, while Tesla and its Japanese partner Panasonic largely control most of the battery production in the United States.

When it opens, the new GM-LG battery plant will supply batteries for the Cadillac Lyriq EV crossover that GM is expected to start building at its nearby Spring Hill assembly plant next year. LG is expected to supply the batteries from Korea until then.

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Supplier sources have said that a second Cadillac electric crossover, called Symboliq, is expected to join the production Lyriq at Spring Hill in 2024, along with two new electric crossovers for Honda and its premium brand Acura.

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GM to build electric vehicles at five North American factories by 2025

GM said in October it would invest $ 2 billion in Spring Hill to build electric vehicles. The Detroit automaker said last year it was investing $ 27 billion in electric and autonomous vehicles over the next five years.

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GM is expected to build electric vehicles at five North American factories by 2025 – two in Michigan and one each in Tennessee, Ontario, Canada and Mexico, according to research firm AutoForecast Solutions.

LG Energy Solution said last month that it plans to invest more than $ 4.5 billion in battery production in the United States over the next four years, including plans to build at least two new factories.

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The expansion of electric vehicles with GM is expected to contribute to the “success of the US Green New Deal policy,” Kim Jong-hyun, CEO of LG Energy Solution, said in a statement, adding that LG “will focus more on the establishing a stable supply chain system. which is differentiated and stable in the United States, from R&D to battery production to raw materials. “

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