General Motors and LG Chem have announced an exciting new venture that will see the two companies investing a total of $275 million to expand their EV battery plant in Spring Hill, Tennessee.
General Motors Co and LG Energy Solution Ltd said Friday that they are investing an additional $275 million in their Tennessee joint venture battery cell plant. This will increase production by more than 40%.
When Ultium Cells Spring Hill plant’s production output reaches 50 gigawatt-hours in late 2023, it will be one of at least four U.S. joint venture battery plants supplying GM electric vehicles– as the largest U.S automaker rapidly ramps up production.
The 400 new jobs are in addition to the 1,700 already employed at the factory and come as a result of the $2.3 billion investment announced in April 2021.
Next week, the 900 workers at the $2.3 billion Ultium plant in Warren, Ohio will vote on whether to unionize with the United Auto Workers (UAW). The petition comes after production began at the joint venture between GM and Honda back in August.
GM and LG Energy are also potential participants in Indiana’s fourth U.S. battery plant, which is estimated to cost around $2.4 billion dollars altogether. In 2024, they will open a $2.6 billion battery cell plant located in Lansing, Michigan.
Ultium Cells plans to have a 130 GWh battery cell capacity upon the completion of three announced facilities by the end of this decade.
The U.S. Energy Department stated in July that it plans to loan Ultium $2.5 billion dollars to finance new lithium-ion battery cell factories. If all goes smoothly, an announcement confirming the loan could be made this month, officials said.
President Joe Biden has not yet endorsed California’s regulation to stop selling gas-only powered light-duty vehicles by 2035, although he wants 50% of all new vehicles sold in 2030 to be electric or plug-in hybrid models. By 2035, GM also plans to sell nothing but electric vehicles.
This major investment is great news for the electric vehicle industry and shows that GM and LG Energy Solution are serious about expanding their battery production to meet the demands of an increasingly electrified future. It is a major step towards creating a greener, more sustainable transportation system.
With this move, General Motors and LG are helping to create the infrastructure that will drive the transition from gas-powered vehicles to electric.
And, as the automotive industry moves further into the future, this joint venture will be a key part of that shift. It’s an exciting step forward for both companies and a sign of great things to come.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.