General Motors and battery supplier LG Chem are taking their long-standing relationship a step further with the formation of a new joint venture company. This new JV will aid the automaker in building electric vehicles, starting with a new battery cell production site.
The partnership’s first manufacturing facility will be at a greenfield site near Lordstown, Ohio, a community that just recently lost its GM vehicle assembly plant. The new plant will create 1,100 jobs.
GM says the Lordstown facility will be state-of-the-art and will use the most advanced manufacturing processes all under one roof to produce cells. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials.
The joint venture agreement does not cover just manufacturing. GM and LG Chem will also team up on the development of future battery technologies. Both parties say the ultimate goal is to eventually get battery costs to “industry-leading” levels.
“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.”
Groundbreaking of the new manufacturing facility is expected in mid-2020.