GM and LG are spending $275 million to develop an EV battery factory in Tennessee

GM and LG are spending $275 million to develop an EV battery factory in Tennessee

In order to boost production by more than forty percent, LG Energy Solution and General Motors will invest an additional $275 million in their Tennessee joint venture battery plant.

Friday, the joint venture, which is called Ultium Cells LLC, said that the new investment comes on top of the $2.3 billion that was announced in April 2021 to build the 2.8 million square foot facility. The plant is expected to begin producing toward the end of 2023.

In order for automakers to qualify for federal incentives under the Inflation Reduction Act of the Biden administration, domestic production of battery cells in North America is expected to be crucial in the years to come.

When the plant is fully operational, the new investment made by GM and LG Energy is anticipated to raise capacity from 35 gigawatt-hours to 50 gigawatt-hours.

It is anticipated that the Ultium Cells Spring Hill facility will join other Ohio and Michigan joint venture battery cell manufacturing facilities. Also under construction is a facility in Michigan, which is expected to start producing in late 2024.

Tim Herrick, GM’s vice president of EV Launch Excellence, stated, “Ultium Cells will play a critical role in making GM’s commitment to an all-electric future a reality.” By expanding battery cell output at Ultium Cells Spring Hill, this investment will help GM offer customers the broadest EV portfolio of any automaker and further solidifies our path toward U.S. EV leadership.”

Topics #$275 million #EV battery factory #GM and LG #Tennessee

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