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6752 - Panasonic News Story

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Sector
Technology
Size
Large Cap
Market Cap £19.81bn
Enterprise Value £21.77bn
Revenue £43.53bn
Position in Universe 51st / 3904

UPDATE 1-GM, LG Energy Solution to build 2nd U.S. battery plant in Tennessee

Fri 16th April, 2021 3:56pm
(Adds UAW, GM comments)
    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 will have production
capacity of about 35 gigawatt-hours, similar to the companies'
Ultium Cells joint-venture plant in Lordstown, Ohio, as they
move to respond to the growing demand in the electric vehicle
market. The plant's capacity would enable it to supply battery
packs for more than 500,000 electric vehicles a year.
    "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.
    The United Auto Workers on Friday called on GM to ensure the
new plant is staffed with union-represented workers, which GM
officials have said would be determined by the employees.     
    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 to be
used in the Lordstown plant that opens next year, sources
previously told Reuters.  urn:newsml:reuters.com:*:nL1N2M71I0
    Sources have said the No. 1 U.S. automaker will need more
battery plants beyond Tennessee to meet aggressive EV targets,
including 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 2035.
 urn:newsml:reuters.com:*:nL1N2K31YY
    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
then.
    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
Solutions.
    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
plants. urn:newsml:reuters.com:*:nL1N2L91W6

 (Additional reporting by Paul Lienert; Editing by Nick
Zieminski and Dan Grebler)
 ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))
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