General Motors Company (NYSE: Chart GM - $34.45 0.24 (0.682%) ) is looking to build a second battery factory in the US with South Korean joint-venture partner LG Chem.
According to reports, GM and LG Chem are “in advanced talks” with Tennessee officials to build “a state of the art battery cell manufacturing plant” near the automaker’s existing assembly plant in Spring Hill, one of three sites GM has designated to build electric vehicles.
Ultium Cells, the joint venture between GM and LG Chem, is currently funding a $2.3 billion battery factory near Cleveland, Ohio, on a site “fairly close” to the automaker’s two other designated electric vehicle plants.
GM expects to have a decision by June on where the new facility will be located, Reuters reported.
The company recently unveiled a goal to phase out production of passenger vehicles that run on gasoline or diesel fuel and replace its entire fleet with all-electric cars, sport utility vehicles and light trucks by 2035.
A spokesman for LG Chem told the Detroit Free Press the company is planning more battery plants in the US with GM “to fulfill the EV battery demand.”
Amid an ongoing semiconductor chip shortage that has caused production line shutdowns for many automakers, CNBC reported there has been growing interest in restructuring vehicle supply chains. Most of the higher-tech components, such as battery cells, are manufactured in Europe and Asia.
Samsung Electronics Co is reportedly eyeing four sites in the US as possible locations for a $17 billion semiconductor facility. The chipmaker already has one plant in Austin, Texas.
The Biden administration recently said it is committed to improving supply chain problems affecting a number of industries.
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Source: Equities News
