GM CEO "Continuing Cooperation with LG... Diversifying Battery Strategy"

"Battery Defect Limited to Bolt Electric Vehicles"
No Impact on 'Ultium'... Multiple Battery Systems Being Pursued
Expectations to Reduce Dependence on LG
LG "Focusing on Securing Stable US Supply Chain"

[Photo by Bloomberg TV]

[Asia Economy Reporter Kim Suhwan] Amid forecasts that the recall crisis of GM's Bolt electric vehicle has put the partnership between GM and LG to the test, Mary Barra, CEO of GM, stated that the company will continue its collaboration with LG in the battery sector. However, with GM announcing plans to pursue multiple battery systems, there are also speculations that the company might be simultaneously strategizing to reduce its long-term dependence on LG.

On the 26th (local time), CEO Barra said in an interview with Bloomberg News, "Through our joint venture with LG, an important partner, we can combine our company's expertise with LG's expertise."

The two companies previously established the joint venture 'Ultium Cells' to promote collaboration on battery technology and have begun constructing two battery plants in Ohio and Tennessee, USA.

CEO Barra also expressed "considerable confidence" in GM's proprietary electric vehicle battery technology platform, 'Ultium'.

Ultium is GM's in-house electric vehicle battery platform that covers the entire EV manufacturing process from battery production to assembly, and it receives batteries developed by LG Energy Solution. Ultium is expected to be applied to all electric vehicle models GM will release in the future.

CEO Barra emphasized, "The recent battery defect issue is limited to the Bolt electric vehicle" and "It will not affect Ultium."

The Ultium battery is scheduled to be installed in the Hummer pickup truck and Cadillac electric SUV 'Lyriq', both set to launch by the end of this year.

In particular, CEO Barra stated that GM will not be fixated on a single battery company or design for future models, emphasizing, "We have multiple pathways to firmly establish a leading position in the transition to electric vehicles."

[Image source=Reuters Yonhap News]

She explained that the Ultium platform is designed flexibly, allowing for the introduction of various battery technologies.

CEO Barra's remarks came amid the discovery of battery defects in GM's Bolt electric vehicles, leading to the recall of over 100,000 vehicles and expected costs reaching $1.8 billion (approximately 2.1 trillion KRW).

In fact, Bloomberg News analyzed on the 23rd that the GM recall crisis has placed the partnership between LG Energy Solution and GM on an unprecedented test.

Ultimately, there is cautious speculation that GM might focus on developing its own technology or seek other partners besides LG to manage risk diversification related to battery defects.

On the same day, CEO Barra highlighted that GM is currently operating a battery technology research center and is also constructing a battery manufacturing research institute. She introduced a technology development collaboration with SolidEnergy Systems (SES), a startup specializing in electric vehicle battery cells, reaffirming plans to mass-produce its own lithium-metal batteries by 2023.

[Image source=Reuters Yonhap News]

In this regard, LG stated that it will continue its partnership with GM and actively cooperate not only in battery production but also in basic research and product development.

An LG Energy Solution official said, "As both GM and the U.S. government are actively promoting the expansion of electric vehicles, we will focus on establishing a stable local battery supply chain through battery production, basic research, product development, and raw material procurement."

Given that LG and GM have maintained a collaborative relationship for 12 years since 2009, there are forecasts that GM will find it difficult to change partners in the short term.

Especially since the two companies announced plans to build a battery plant worth $4 billion (approximately 4.7 trillion KRW) through their joint venture and to employ at least 1,000 people, it is analyzed that the partnership is likely to continue for the time being.

The electric vehicle battery joint venture 'Ultium Cells' factory being established by LG Energy Solution and GM in Ohio, USA [Image source=Yonhap News]

Bloomberg News assessed, "For the time being, GM has little choice but to maintain a close relationship with LG," adding, "LG also cannot afford to lose a 'major customer' like GM."

This content was produced with the assistance of AI translation services.