GM-LG Chem Joint Venture Plans Second Stateside EV Battery Manufacturing Unit
General Motors Company (NYSE: GM) is planning to invest big in electric vehicle battery manufacturing, in line with the increased commitment shown by traditional automakers to shift away from internal combustion vehicles.
What Happened: GM and its joint venture partner LG Chem are contemplating setting up a second battery manufacturing unit in the U.S., the Wall Street Journal reported, citing a GM spokesperson.
LG Chem has spun off its battery manufacturing unit into a subsidiary, LG Energy Solutions.
A decision on the unit could come as early as the first half of 2021, the report said.
The two joint venture partners are focusing on Tennessee as the location for the plant, the WSJ report said.
Related Link: The US Is Catching Up In the EV Race
If finalized, the plant would reportedly be set up near GM's Spring Hill assembly plant. The report also said the plant would be similar in scope to the $2.3-billion battery manufacturing unit the two companies are constructing in Lordstown, Ohio.
Why It's Important: Traditional automakers are under pressure from regulators to make more environmentally friendly EVs in a bid to curb pollution. Batteries are a key component of an EV that determine a design's range and energy efficiency.
The proposed plan by GM to invest more into in-house battery manufacturing comes at a tim when two of the world biggest battery manufacturers — namely South Korea's LG Energy Solutions and SK Innovation — are locked in a trade dispute in the U.S. that could disrupt supplies to OEMs.
GM Price Action: At last check, GM shares falling 0.25% to $52.54.
Related Link: GM Joint Venture's 00 EV Outsold Tesla Model 3 In China: Report
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