GM, LG to Spend $2.3 Billion on Venture to Make Electric-Car Batteries

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)

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