LG Energy Solution plans to spend $ 2.1 billion with General Motors.
LGES and GM are to fund the project equally through Ultium Cells, the joint venture owned by the two giants. In other words, the number of battery factories that the two companies share would reach three, according to LG Chem’s regulatory files.
LGES declined to provide details about the new plant’s location or production capacity.
In December, Reuters reported that GM had proposed building a $ 2.5 billion battery plant near Lansing, Michigan, with LGES.
LGES owns over 20% of the global electric vehicle battery market and has business relationships with most of the big names in the market including Tesla, Volkswagen AG and Hyundai Motor Co, among others.
Asians are also building two GM plants in Ohio and Tennessee that will be able to produce 70 GWh of batteries, which could power about 1 million electric vehicles by 2024.
GM invests in electric cars
In other news, General Motors has announced that it will invest $ 7 billion in Michigan, much of it aimed at dramatically increasing the production of large electric pickup trucks, intensifying the fight with rival Ford for the supremacy of electric vehicles in America. north.
GM says the Detroit-Hamtramck and Orion Township plants will be able to build more than 600,000 electric trucks a year by the end of 2024, with three other factories in Tennessee, Ontario and Mexico, increasing total electric vehicle production capacity in North America. to over one million units by the end of 2025.
LGES has production facilities in the United States, China, South Korea, Poland and Indonesia.
His announcement came ahead of the company’s launch on the stock exchange later this week, following the launch of South Korea’s largest initial public offering. The public offering attracted $ 12.8 billion from institutional investors and $ 96 billion from retail investors.