2022 GMC Hummer EV Sport Utility Truck “Edition 1”
General Motors plans to build a second plant in the United States to produce battery cells for electric vehicles as part of a joint venture with LG Chem.
The automaker confirmed the plans Thursday morning after the Wall Street Journal reported that the companies were on the verge of deciding whether to locate the plant in Tennessee, but no final selection had been made. GM said he hoped “to have a decision on the potential project” by June.
Through their joint venture Ultium Cells LLC, GM and LG are currently spending $ 2.3 billion on a new battery cell plant in Ohio. The plant is expected to be completed in 2022, which will allow the automaker to cut costs and get vehicles to market faster. The plant is seen as a backbone of GM’s plans to make its next-generation electric vehicles profitable.
GM is expected to release 20 new or redesigned electric vehicles as part of its $ 27 billion investment plan from 2020 to 2025.
Ultium is GM’s next-generation platform and batteries, slated to debut later this year in the GMC Hummer EV pickup. Early vehicles are not expected to include Ultium battery cells from the plant currently under construction.
Last year, GM’s outgoing sustainability director Dane Parker said the automaker should invest more in battery production capacity. He said the increase would likely be a mix of new facilities and upgrades to existing factories.
“We are able, in many cases, to modernize existing propulsion plants to do this,” he said at a Goldman Sachs conference in December. “In some cases we will build new ones.”
Amid a continuing shortage of semiconductor chips impacting vehicle production around the world, there is growing interest in restructuring vehicle supply chains, especially for high-end components. technology, including battery cells. The White House last week ordered a review of the U.S. battery supply chain.
“We need to bring battery production to the United States,” Ford CEO Jim Farley told a Wolfe Research conference last month. “We can’t live with what we’re doing with fleas right now in Taiwan. It’s just important.”
Ford has not announced any plans to invest in battery production in the United States. Most batteries are currently manufactured in Asia and Europe. Tesla currently operates a large battery and cell manufacturing plant with panasonic in Nevada. Tesla also told investors in September that it had started producing its own cells at a pilot plant in Fremont, California.