GM to Help Build $2.3 Billion Battery-Cell Plant in Tennessee
By Ben Foldy
General Motors Co. and joint-venture partner LG Chem Ltd. plan
to invest $2.3 billion to construct a second battery-cell plant to
support the Detroit auto maker's efforts to expand its
The venture, Ultium Cells LLC, will build the plant in Spring
Hill, Tenn., on land leased from GM, creating 1,300 new jobs, the
companies said Friday. The Wall Street Journal reported last month
that the two companies were planning a second battery-cell plant,
likely in Tennessee.
LG, part of a Korean conglomerate, is one of the largest makers
of batteries for electric vehicles.
GM and LG said construction on the roughly 2.8 million
square-foot facility in Tennessee will begin soon, with its opening
slated for late 2023. It will supply battery cells to GM's Spring
Hill assembly plant.
Governments are ratcheting up regulatory pressure on auto makers
to reduce the greenhouse gases emitted by their products, while
incentivizing consumers to buy electrified vehicles with rebates
and tax credits. The Biden administration aims to accelerate a
transition toward electric vehicles in the U.S., and has proposed
$174 billion to help spur their uptake as part of the president's
Growth projected for electric-vehicle sales requires a massive
expansion in battery-making capacity, and analysts say shortages
may disrupt some auto makers' plans over the next few years. Some
car companies like GM and Volkswagen, which plans to build six
battery factories in Europe by decade's end, have begun investing
directly in battery production in order to secure a steady
GM, the largest U.S. auto maker by sales, in January said it
aspired to hit a 2035 target date for phasing out gasoline- and
diesel-powered vehicles from its showrooms around the world.
The Detroit auto maker and LG formed Ultium in 2019 to mass
produce battery cells, and announced the joint venture would build
a first factory close to an assembly plant in Lordstown, Ohio, that
GM sold to an electric-vehicle startup in 2019. The companies on
Friday said construction at the site in Ohio is under way.
Colin Kellaher contributed to this article.
Write to Ben Foldy at Ben.Foldy@wsj.com
(END) Dow Jones Newswires
April 16, 2021 13:29 ET (17:29 GMT)
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