GM (GM) to Partner with LG Chem For Second Battery Factory in U.S.: Report
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General Motors (NYSE: GM) is reportedly creating a joint venture (JV) with LG Chem to build a second battery factory in the U.S., according to the Wall Street Journal.
This news doesn’t come as a surprise as the Detroit-based company made a series of bold moves to transform its traditional carmaking business into producing EVs.
According to the WSJ, two companies are nearing a decision to locate the plant in Tennessee. The final decision is yet to be made, the report notes. A GM spokesperson confirmed that talks are taking place with a decision possibly coming in the coming months.
A senior LG executive also confirmed talks with GM but added the South Korean company is also planning additional moves in this field to support other automakers.
In case there is a final agreement, the Tennessee plans would be the second battery factory given that two companies are already constructing a $2.3 billion battery plant in northeast Ohio. The factory is expected to be open in 2022 and it is unlikely that the second factory will be as big as the one in Ohio.
“We are already seeing the benefits of having our own cell manufacturer. It’s allowing us to go much deeper into the supply base to secure what we need,” GM CEO Mary Barra said last week.
In January, GM committed to going all-electric by 2035 after it increased the number of pure battery-electric vehicles it will launch by the middle of this decade to 30.
In November last year, GM announced it increased the EV and AI commitment to $27 billion from the previous $20 billion announced in March.
“We want to lead in this space. We don’t just want to participate, we want to lead. Tesla’s got a good jump and they’ve done great things. They’re formidable competitors … and there’s a lot of start-ups and everyone else invading this space. We’re not going to subside leadership there,” Doug Parks, GM executive vice president of global product development, purchasing and supply chain, said.
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