LG and GM to Build $2 Billion Battery Plant in Michigan

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] American automobile company General Motors (GM) plans to invest $3 billion to establish a new electric vehicle factory in Michigan, according to the Wall Street Journal (WSJ). GM is also reportedly set to build a new battery factory in Michigan with LG Energy Solution, investing $2 billion together.

On the 10th (local time), WSJ reported, citing sources, that GM plans to convert its factory in Orion near Detroit into a manufacturing hub for electric pickup trucks. Although the factory is currently virtually idle, it will be transformed into an electric vehicle factory employing 1,500 people, supported by an investment of about $2 billion.

GM plans to build a battery cell factory near its Lansing, Michigan plant in partnership with LG Energy. The two companies will invest 50-50 in the joint venture, with a total investment of $2 billion. GM and LG are expected to each contribute $1 billion.

GM and LG jointly established Ultium Cells to target the U.S. electric vehicle market. Ultium Cells is currently constructing a battery factory in Ohio.

A GM official explained that negotiations and approval processes regarding tax reductions with the local government are ongoing, and the plans may change.

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