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GM And LG Chem To Launch EV Battery Factory In Ohio: Sources

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GM And LG Chem To Launch EV Battery Factory In Ohio: Sources

General Motors Company (NYSE: GM) could form a joint venture with South Korean chemical company LG Chem Ltd. to manufacture electric vehicle batteries in Ohio, unnamed sources said to Reuters.  

What Happened

Reliable sources told Reuters that General Motors and LG Chem are all set to announce a 50:50 joint venture on Thursday.

The purpose of their collaboration is to establish a manufacturing facility at the Lordstown area in Ohio for the production of electric vehicle batteries.

The estimated budget for the project is over $2 billion, with each partner planning to invest over $1 billion, according to the Reuters report.   

Nothing Official Yet

When asked, an LG Chem spokesman refused to comment on the matter. A GM spokesperson responded in a similar fashion.

“Talks occur on a regular basis in the auto industry between a variety of partners on different topics, but as a matter of policy we don’t discuss who, where or when those discussions might occur,” GM spokesperson told the sources, according to the Reuters report.

Why It Matters

Earlier this year, GM sold its Lordstown Assembly plant but said they have plans to set up an electric battery cell plant in the Lordstown area that could eventually provide 1,000 jobs.

LG Chem, on the other hand, said in July that they are planning to build their second U.S. EV battery plant, which could start production in 2022.

 

Posted-In: General Motors LGNews Retail Sales Global Tech Media General Best of Benzinga

 

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