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GM, LG Energy Solution to build 2nd U.S. battery plant in Tennessee

Fri 16th April, 2021 3:00pm
By Ben Klayman
    DETROIT, April 16 (Reuters) - General Motors Co  GM.N  and
South Korean joint-venture partner LG Energy Solution on Friday
said they will build a second U.S. battery cell manufacturing
plant, revealing plans for a $2.3 billion factory in Spring
Hill, Tennessee.
    The planned 2.8 million-square-foot plant, scheduled to open
in late 2023, will employ 1,300 people and is expected to have a
production capacity similar to the companies' Ultium Cells
joint-venture plant in Lordstown, Ohio, of about 35
gigawatt-hours as they move to respond to the growing demand in
the electric vehicle market. 
    "The addition of our second all-new Ultium battery cell
plant in the U.S. with our joint venture partner LG Energy
Solution is another major step in our transition to an
all-electric future," GM Chief Executive Mary Barra said in a
    LG Chem  051910.KS  said in a regulatory filing that its LG
Energy Solution unit will invest $933.5 million in the plant
between this year and 2023. 
    GM and LG Energy Solution will use a different,
less-expensive battery chemistry in Tennessee than the one from
the Lordstown plant that opens next year, sources previously
told Reuters.*:nL1N2M71I0
    Source have said the No. 1 U.S. automaker will need more
battery plants beyond Tennessee to meet aggressive EV targets,
including the projected sales of more than 1 million EVs
globally in 2025. GM's longer-range target includes halting
sales of light-duty gasoline and diesel-powered vehicles by
    Most battery manufacturing is currently concentrated in
China and Korea, while Tesla  TSLA.O  and Japanese partner
Panasonic  6752.T  largely control most U.S. battery production.
    When it opens, the new GM-LG battery plant will supply
batteries for the Cadillac Lyriq crossover EV that GM is slated
to start building at its nearby Spring Hill assembly plant next
year. LG is expected to supply the batteries from Korea until
    Supplier sources said 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  7267.T  and its premium Acura brand.
    GM said in October it would invest $2 billion in Spring Hill
to build EVs. The Detroit automaker said last year it was
investing $27 billion in electric and autonomous vehicles over
the next five years.
    GM is expected to build EVs in five North American plants by
2025 - two in Michigan, and one each in Tennessee, Ontario,
Canada, and Mexico, according to research firm AutoForecast
    LG Energy Solution said last month it planned to invest more
than $4.5 billion in U.S. battery production over the next four
years, including plans to build at least two new

 (Additional reporting by Paul Lienert, Editing by Nick
 ((; 313-600-2277; Reuters
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