GM, LG Power drop plan for fourth U.S JV battery plant

WASHINGTON – Basic Motors Co and LG Power Answer don’t plan to maneuver ahead with a fourth U.S. battery cell manufacturing plant, two sources instructed Reuters on Friday.

The businesses’ three way partnership Ultium Cells LLC stated in August it was contemplating a website in New Carlisle, Indiana, for a fourth U.S. battery plant, anticipated to price round $2.5 billion.

“We’ve been very clear that our plan consists of investing in a fourth U.S. cell plant, however we’re not going to touch upon hypothesis,” GM stated in a press release on Friday.

LG Power stated late on Friday that discussions on a fourth plant stay ongoing “however no determination has been made.” The plan was reported earlier by the Wall Road Journal.

GM might nonetheless proceed with plans to construct a brand new plant in Indiana with a brand new accomplice, the sources stated.

The Detroit automaker and the South Korean firm are constructing a $2.6 billion plant in Michigan, set to open in 2024. In December, Ultium stated it could enhance its funding in a $2.3 billion Tennessee plant that’s set to open later this yr by one other $275 million.

GM stated Friday it’s quickly investing to ramp up cell manufacturing with LG Power, including that the crops in Tennessee and Michigan are on observe to open in 2023 and 2024, respectively.

“This cell capability retains us on observe to provide 400,000 EVs (electrical automobiles) in North America by mid-2024 and we count on to have cell capability to provide greater than 1 million EVs yearly in North America in 2025,” GM stated.

Final month, the U.S. Power Division finalized a $2.5 billion low-cost mortgage to Ultium to assist pay for the three factories.

President Joe Biden has set a purpose for 50% of U.S. auto manufacturing by 2030 to be electrical or plug-in electrical hybrid automobiles. GM plans to cease promoting gasoline-powered automobiles by 2035 however remains to be investing in inner combustion manufacturing.

(Reporting by David Shepardson; Enhancing by Kirsten Donovan and William Mallard)