General Motors Company (NYSE: GM) and LG Chem Ltd. reported plans to produce battery cells for future battery-electric vehicles. The companies will invest a total of USD 2.3 Billion through a new equally owned joint venture company. The new joint venture will launch a new factory in Lordstown area in Northeast Ohio that will employ over 1,000 people.
This JV will include a joint development agreement that pairs two leads in battery science to produce and develop advanced battery technologies in the effort to reduce battery costs to industry prices. “With this investment, Ohio and its highly capable workforce will play a key role in our journey toward a world with zero emissions,” said GM Chairman and CEO Mary Barra. “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.”
“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,” said LG Chem Vice Chairman & CEO Hak-Cheol Shin. “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.”
Initial groundbreaking is expected to take place in mid-2020.