- General Motors Co (NYSE: GM) and LG Energy Solution joint venture, Ultium Cells LLC, announced over $2.3 billion investment to construct its second U.S. battery cell manufacturing plant in Spring Hill, Tennessee, to supply battery cells to GM’s Spring Hill assembly plant.
- The move will intensify its war with Tesla Inc (NASDAQ: TSLA) and Panasonic Corp (OTC: PCRFF).
- The new plant will be built on GM leased land. The plant has 1,300 job creation potential with a 35 gigawatt-hour production capacity.
- It will be able to supply batteries to over 500,000 EVs a year, according to Reuters.
- The construction of the 2.8 million-square-foot facility will begin immediately and is scheduled for a late 2023 opening.
- GM’s Ultium-powered electric vehicles (EVs) will be qualified for Level 2 and DC fast charging. Most EVs will have 400-volt battery packs and up to 200 kW fast charging capability. GM’s truck platform will have 800-volt battery packs and 350 kW fast charging capability.
- LG Chem’s LG Energy Solution unit will invest $933.5 million in the plant between 2021 and 2023.
- GM and LG Energy Solution will use cheaper battery chemistry in Tennessee than the Lordstown plant that will launch next year.
- GM’s sales projection of over 1 million global EVs in 2025 will require more battery plants beyond Tennessee.
- The new plant will supply batteries for the Cadillac Lyriq crossover EV. GM is expected to start building the EV at its nearby Spring Hill assembly plant next year. LG will supply the batteries from Korea until then.
- A second Cadillac electric crossover, called Symboliq, is expected to join the Lyriq in production at Spring Hill in 2024, along with two new electric crossovers for Honda Motor Co Ltd (NYSE: HMC) and its premium Acura brand.
- GM has planned to invest $2 billion for EV manufacturing in Spring Hill as of October. Last year, the company announced a $27 billion investment in electric and autonomous vehicles over the next five years.
- GM plans to build EVs in five North American plants by 2025, including two in Michigan and one each in Tennessee, Ontario, Canada, and Mexico.
- LG Energy Solution plans to invest over $4.5 billion in U.S. battery production over the next four years, including at least two new plants, based on last month’s announcement.
- Price action: GM shares traded higher by 0.30% at $58.79 on the last check Friday.
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