General Motors and LG Chem partner for $2.3bn EV battery factory

The collaboration is expected to drive down battery costs while improving the technology for customers

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General Motors (GM) and LG Chem are to form a $2.3 billion (£1.7bn) joint venture to mass-produce battery cells for future electric vehicles (EVs) in the US.

They will establish an assembly facility on a greenfield manufacturing site in the Lordstown area of Northeast Ohio, helping create more than 1,100 new jobs.

The companies say the plant will use the “most advanced” manufacturing processes to produce the battery cells efficiently with little waste and it will be “extremely flexible” and able to adapt to ongoing advances in technology and materials.

GM Chairman and CEO Mary Barra said: “With this investment, Ohio and its highly capable workforce will play a key role in our journey toward a world with zero emissions.

“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.”

LG Chem Vice Chairman & CEO Hak-Cheol Shin added: “Our joint venture with the No. 1 American automaker will further prepare us for the anticipated growth of the North American EV market, while giving us insights into the broader EV ecosystem.

“Our long-standing history with General Motors has proven our collective expertise in this space and we look forward to continuing this drive for zero emissions.”