GM confirms LG battery JV for Lordstown
General Motors has confirmed an earlier report it would team up with LG Chem to mass-produce battery cells for future battery-electric vehicles.
Together, the companies will spend up to US$2.3bn 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 plant manufacturing processes will all be 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.
In addition to vertically integrating the manufacturing of battery cells in the US, 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 a new battery electric truck coming in autumn 2021.
Groundbreaking is expected to take place in mid-2020.