Plans for a fourth electric vehicle battery plant from the partnership between GM and LG Energy Solution are on hold “indefinitely” after executives ended discussions without agreeing on progress. 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 at the Ohio plant began in September with batteries for the Hummer EV and Cadillac Lyriq.
The joint venture then expanded its partnership, announcing 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 were considering Indiana as a location for their fourth battery plant, as Ultium Cells said 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 to the Wall Street Journal, people familiar with the matter say the battery factory is on hold “indefinitely” after talks between GM and LG failed to move forward.
Though GM won’t move forward with LG for its fourth electric vehicle battery factory, sources say the company still plans to move forward with one more factory. 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 told the WSJ that plans with LG fell through due to the battery company’s rapid growth in the United States and economic uncertainty. LG is also working with Honda and Stellantis and is considering adding two more battery factories in partnership 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 on its upcoming line of highly anticipated “EVs 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 nearly $1 billion in V-8 engines (the last thing we need), but that’s 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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