In the partnership, the companies will invest up to a total of $2.3 billion through a new, equally owned joint venture company. The joint venture, says the company, will establish a battery cell assembly plant on a greenfield manufacturing site in the Lordstown area of Northeast Ohio that will create more than 1,100 new jobs.
"With this investment, Ohio and its highly capable workforce will play a key role in our journey toward a world with zero emissions," says GM Chairman and CEO Mary Barra. "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."
The state-of-the art plant, says the company, will use the most advanced manufacturing processes all under one roof to produce cells efficiently, with little waste, and will benefit from strong economies of scale throughout the value chain. The plant will be designed to be extremely flexible and able to adapt to ongoing advances in technology and materials.
In addition to vertically integrating the manufacturing of battery cells in the U.S., LG Chem will gain access to an experienced workforce, says the company. It will also benefit from a dedicated production stream of future EVs from GM's next generation of battery-electric vehicles, including an all-new battery-electric truck coming in the fall of 2021.
LG Chem Vice Chairman & CEO Hak-Cheol Shin adds, "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."
The collaboration also includes a joint development agreement to develop and produce advanced battery