GM, LG to Spend $2.3 Billion on Venture to Make Electric-Car Batteries
December 05 2019 - 9:30AM
Dow Jones News
By Mike Colias
General Motors Co. and Korea's LG Corp. said they plan to
jointly build a large battery-cell factory in Ohio, the latest
example of auto makers plowing money into develop of electric
cars.
GM and LG said Thursday they will invest a combined $2.3 billion
in a 50-50 joint venture. The companies will co-develop and
assemble battery cells to be used in GM electric vehicles in coming
years, including a battery powered truck that GM plans to introduce
in the fall of 2021.
The companies said the joint venture would drive down the cost
of electric-vehicle batteries to "industry-leading levels." GM said
the plant would be among the world's largest battery-cell
factories.
Auto makers have been partnering with and investing in battery
makers as they gear up to spend around $225 billion to develop new
electric-vehicle models over the next several years, according to
consultancy AlixPartners LP. Tightening fuel-efficiency and
emissions regulations, especially in China and Europe, are prodding
auto makers to electrify their vehicle lineups.
The GM-LG factory will be built near Lordstown, Ohio, where GM
last spring shuttered a large vehicle assembly plant that in recent
years had employed roughly 4,000 workers. A startup company has
acquired that facility, where it plans to make electric trucks.
GM said the new battery plant will employ more than 1,100
workers. Construction on the factory is expected to begin in
mid-2020.
(END) Dow Jones Newswires
December 05, 2019 09:15 ET (14:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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