GM and LG partner up to build a new battery factory in the US

GM and LG partner up to build a new battery factory in the US

General Motors and LG have put plans to build, in partnership, a fourth factory of batteries for electric cars in the United States. According to information from the Wall Street Journal, the disagreement between the parties was great, and the automaker is already looking for another company to take LG’s place in the business.

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The main reason, according to the publication, is that General Motors demanded speed from LG so that the new factory, scheduled to be built in Indiana, left the drawing board as quickly as possible. The responsible for the production of battery cells for electric cars did not agree, and the plans were suspended “indefinitely”.

The idea of ​​setting up a new plant in the Indiana region, however, is still alive on the sides of General Motors, which would have already started the search for a new company willing to help in the production of battery cells. The name of the possible future supplier, however, has not been disclosed so far.

LG partners with other brands

The partnership between LG and General Motors to manufacture batteries for electric cars is not the only one involving the cell supplier. LG Energy Solution also has a contract in place with Honda and Stellantis, and is negotiating for the construction of two other factories for Hyundai.

Regarding business with GM, so far the relationship has yielded good results. LG and General Motors formed the joint venture Ultium Cells and opened the business with a gigantic factory in Ohio, capable of generating 35 GWh annually. A second facility in Spring Hill, Tenn., and a third in Lansing, Michigan, are expected to help achieve the partnership’s 130 GWh annual generation goal.

The companies did not officially comment on the break in the partnership, and the latest joint information on the subject was published by Ultium Cells itself on its Twitter account, referring to an investment of US$ 275 million in the Spring Hill plant, in the beginning from December.

General Motors Battery LabGeneral Motors Battery LabGeneral Motors Battery Lab1/10

General Motors Battery Lab

Jeffrey Sauger/Handout, General Motors