DETROIT, Dec. 5, 2019 /PRNewswire/ --
- Will create more than 1,100 new jobs in a new, Ohio-based facility
- Joint venture to drive cost per kilowatt hours to
industry-leading levels
- New battery plant to have an annual capacity of more than 30
gigawatt hours with flexibility for expansion
- Companies enter joint agreement to develop advanced tech,
lower cost batteries
General Motors (NYSE: GM) and LG Chem today announced plans to
mass-produce battery cells for future battery-electric vehicles.
Together, the companies will invest up to a total of $2.3 billion through a new, equally
owned joint venture company.
The JV will establish a battery cell assembly plant on a
greenfield manufacturing site in the Lordstown area of Northeast Ohio that will create more than
1,100 new jobs.
The state-of-the art plant will use the most advanced
manufacturing processes all under one roof to produce cells
efficiently, with little waste, and will benefit from strong
economies of scale throughout the value chain. The plant will be
extremely flexible and able to adapt to ongoing advances in
technology and materials.
The collaboration also includes a joint development agreement
that brings together two leaders in battery science to develop and
produce advanced battery technologies, with the goal of reducing
battery costs to industry-leading levels.
This announcement, along with the recent sale of GM's
manufacturing complex in Lordstown,
Ohio to Lordstown Motors Corp. for the production of
battery-electric trucks, positions Northeast Ohio and the Mahoning Valley as a
major hub for technology and electric vehicle manufacturing.
"With this investment, Ohio and
its highly capable workforce will play a key role in our journey
toward a world with zero emissions," said GM Chairman and CEO
Mary Barra. "Combining our
manufacturing expertise with LG Chem's leading battery-cell
technology will help accelerate our pursuit of an all-electric
future. We look forward to collaborating with LG Chem on future
cell technologies that will continue to improve the value we
deliver to our customers."
In addition to vertically integrating the manufacturing of
battery cells in the U.S., LG Chem will gain access to an
experienced workforce. It will also benefit from a dedicated
production stream of future EVs from GM's next generation of
battery-electric vehicles, including an all-new battery-electric
truck coming in the fall of 2021.
"Our joint venture with the No. 1 American automaker will
further prepare us for the anticipated growth of the North American
EV market, while giving us insights into the broader EV ecosystem,"
said LG Chem Vice Chairman & CEO Hak-Cheol Shin. "Our long-standing history with
General Motors has proven our collective expertise in this space,
and we look forward to continuing this drive for zero
emissions."
This investment builds on GM's $28
million investment in its Warren, Michigan battery lab announced late
last year. It is also in addition to manufacturing investments in
Ohio announced earlier this year
totaling approximately $700 million
that will create about 450 jobs in Toledo, Parma
and Brookville, Ohio.
Groundbreaking is expected to take place in mid-2020.
General Motors (NYSE:GM) is committed to delivering
safer, better and more sustainable ways for people to get around.
General Motors, its subsidiaries and its joint venture entities
sell vehicles under the Cadillac, Chevrolet,
Baojun, Buick, GMC, Holden and Wuling brands.
More information on the company and its subsidiaries,
including OnStar, a global leader in vehicle safety and
security services, Maven, its personal mobility brand, and
Cruise, its autonomous vehicle company, can be found
at http://www.gm.com.
LG Chem is Korea's largest diversified chemical
company which operates four main business portfolios:
Petrochemicals, Energy Solutions, Advanced Materials and Life
Sciences. The chemical business manufactures a wide range of
petrochemical products from high-value added to commodity goods. LG
Chem also extends its chemical expertise into high-tech areas such
as lithium-ion batteries, industrial & automotive materials,
drugs & vaccines to deliver broad range of differentiated
solutions for our customers. Throughout multiple production
facilities and extensive distribution network worldwide, LG Chem
employs approximately 35,000 people and generated sales of
KRW 28.2 trillion in 2018. For more
information, please visit www.lgchem.com.
Cautionary Note on Forward Looking Statements. This
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possible future events. In making these statements we rely upon
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developments, as well as other factors we consider appropriate
under the circumstances. These statements are not guarantees of
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Factors that might cause such differences include, but are not
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factors, many of which are beyond our control and are described in
our Annual Report on Form 10-K for the year ended December 31, 2018, as well as additional factors
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SOURCE General Motors