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Home > GM and LG Spend $2.3bn on EV Battery Plant in U.S.

GM and LG Spend $2.3bn on EV Battery Plant in U.S.

General Motors made an unexpected electric-vehicle announcement about building a second battery plant with Korean-based LG Chem. “The addition of our second all-new Ultium battery cell plant in the U.S. with joint venture partner LG Energy Solution is another major step in GM’s transition to an all-electric future,” CEO Mary Barra.

The 2.8 million-square foot facility will go up in Tennessee and will cost about $2.3 billion, creating about 1,300 jobs. The decision to build the plant is another step in GM’s transformation into a serious EV player. The company has committed to spending $27 billion between 2021- 25 to launch 30 EV models around the globe. And it has said it aims to be selling only EVs by 2035. The 2.8 million-square foot facility will go up in Tennessee and will cost about $2.3 billion, creating about 1,300 jobs. The decision to build the plant is another step in GM’s transformation into a serious EV player. The company has committed to spending $27 billion between 2021- 25 to launch 30 EV models around the globe. And it has said it aims to be selling only EVs by 2035.

Getting the batteries to power all those cars isn’t a trivial matter. Batteries are becoming an EV battleground. Morgan Stanley for instance, worries that there might not be enough batteries to meet all auto makers’ EV ambitions as demand increases in coming years. In a recent research report MS stated LG/GM joint venture critical to GM’s success in EVs, partly because it mitigates the risk of battery shortages.

The possibility of shortages is one reason companies are investing in factories and domestic production capabilities, rather than taking their chances in the marketplace, and falling at the mercy of supply from other countries. HMC has unrivaled knowledge on how to handle supply chain worries, for more information, please fill in the form below or contact John at john.haran@hmcglobal.co.uk for more details.

To read the full article, please visit: https://www.barrons.com/articles/gm-dropped-an-ev-battery-bombshell-the-market-hasnt-noticed-51618590875To read the full article, please visit:https://www.barrons.com/articles/gm-dropped-an-ev-battery-bombshell-the-market-hasnt-noticed-51618590875

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