General Motors and South Korea’s LG Chem have announced plans for a joint venture to mass-produce battery cells for future battery-electric vehicles. Together, the companies will invest up to a total of $2.3 billion in the new U.S-based JV.
It will establish a battery cell assembly plant on a greenfield manufacturing site in Northeast Ohio that will create more than 1,100 new jobs.
Groundbreaking is expected to take place in mid-2020.
GM Chairman and CEO Mary Barra, says: “Combining our manufacturing expertise with LG Chem’s leading battery-cell technology will help accelerate our pursuit of an all-electric future. 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’s Vice Chairman and CEO Hak-Cheol Shin, adds: “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. 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.”
The collaboration also includes a joint development agreement to develop and produce advanced battery technologies, with the goal of reducing battery costs.