GM and LG halt plans for a fourth electric vehicle battery plant in the US

Plans for a fourth battery plant for electric vehicles from the GM and LG energy solution The partnership is suspended “indefinitely” after executives ended talks without agreeing to go ahead. The automaker is now consulting with at least one other battery supplier for its next US plant.

General Motors and LG Energy formed a partnership called Ultium Cells, in which GM builds the packs and LG handles battery cell production.

Ultium Cells started with a 2.8 million square foot battery factory in Warren, Ohio, about 30 football fields in size and with over 35 GWh annual capacity. production started at the Ohio facility in September with batteries for the Hummer EV and Cadillac Lyriq.

Then the joint venture expanded his partnershipand announced a second 2.8 million square foot facility in Spring Hill, Tennessee, scheduled for production in late 2023. In January Ultium Cells announced a third EV battery in Lansing, Michigan with an expected annual capacity of 50 GWh.

In total, Ultium Cells expects to have 130 GWh of battery cell capacity for electric vehicles when all three plants are at full capacity.

In August, news broke that GM and LG are considering Indiana as a location for their fourth battery plant when Ultium Cells disclosed that it was looking for state tax incentives. According to a new report, GM is still eyeing the location, but it could be used with another battery maker.

Ultium Cells Warren, OH (Credit: Ultium Cells)

GM and LG drop plans for fourth battery plant

Speaking of Wall Street JournalPeople familiar with the matter say the battery factory will be put on hold “indefinitely” after talks between GM and LG failed to move forward.

Though GM won’t go ahead with LG for its fourth electric vehicle battery factory, the company still plans to go ahead with one more factory, according to the sources. GM declined to comment but stated:

We have made it very clear that our plan includes investing in a fourth cell plant in the US.

The sources said so WSJ that plans with LG fell through due to the battery company’s rapid growth in the US and economic uncertainty. LG is too Cooperation with Honda and Stellantis and is considering adding two more battery plants in cooperation with Hyundai.

In addition, the relationship has crumbled over certain business issues, such as the pace of scaling production. The sources said GM wants to speed up production, while LG doesn’t necessarily agree.

Electrek’s take

As GM works to ramp up production of electric vehicles, its relationship with LG is critical. GM plans to use the batteries for its upcoming line of much-anticipated “Electric cars for everyone‘, including a Blazer EV, a Silverado EV and an Equinox EV.

For GM to meet its goal of selling 1 million electric vehicles across North America and China by 2025 and catching up with current EV leader Tesla, battery capacity must play a significant role.

The demand is there. GM has a significant backlog on several of its upcoming electric vehicles. The challenge is to make them and get them into the hands of customers. The battery supply will be one of the most important aspects. Instead, GM announced on Friday that it’s investing almost $1 billion in V-8 engines (the last thing we need), but that’s about it another story.

We’ll update you as we learn more about GM’s fourth battery plant and its relationship with Ultium Cells.

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