LG Energy Solution Ltd. (LGES) and General Motors Co. have unveiled a $2.6 billion plan to build a new electric vehicle (EV) battery plant in the United States.
Ultium Cells LLC, the US-based joint venture of the two companies, will built the factory in Lansing, Michigan, by 2024.
LGES and GM held a ceremony in Lansing on Tuesday for their formal announcement on the joint investment, led by their CEOs – Kwon Young-soo and Mary Barra.
The third joint factory in the US is expected to begin mass-producing batteries in early 2025, with an aim to expand the annual production capacity to 50 gigawatt hours (GWh), enough to make some 700,000 all-electric vehicles.
The joint venture is already building one factory in Ohio and another in Tennessee, with both aiming for annual production capacities of over 35 GWh. The Ohio factory will start operating this year, with the Tennessee plant to start running next year.
1,700 jobs in the area
Ultium Cells will build the new plant on land leased from GM. The new battery cell plant is expected to create 1,700 new jobs when the facility is fully operational. Site preparation on the approximately 2.8 million-square-foot facility will begin this summer, and the plant is scheduled to open in late 2024. The facility will supply battery cells to Orion Assembly in Michigan and other GM EV assembly plants.
“This significant investment demonstrates our commitment to strengthen our Michigan and US manufacturing presence and grow good-paying jobs,” said Barra, GM Chair and CEO. “We will have the products, the battery cell capacity and the vehicle assembly capacity to be the EV leader by mid-decade.”
“With a shared vision, GM and LG Energy Solution pioneered the EV sector by seizing new opportunities in the market well before anyone else did,” said Kwon, CEO of LG Energy Solution. “Our third battery manufacturing plant, fittingly located in America’s automotive heartland, will serve as a gateway to charge thousands and later millions of EVs in the future.”
Kee Eun, Ultium Cells president, added: “We are extremely excited to have another home here in Lansing, Michigan. This facility will lead us into a new era of manufacturing and sustainability as we push toward a zero-emissions future. Our job is to ensure flawless execution through close collaboration with our partners and the State of Michigan.”
The state-of-the-art Ultium Cells Lansing plant will use the most advanced and efficient battery cell manufacturing processes. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials.
GM’s proprietary Ultium battery technology is at the heart of the company’s strategy to compete for nearly every EV customer in the marketplace, whether they are looking for affordable transportation, luxury vehicles, work trucks, commercial trucks or high-performance machines.
GM batteries are unique
Ultium batteries are unique in the industry because the large-format, pouch-style cells can be stacked vertically or horizontally inside the battery pack. This allows engineers to optimise battery energy storage and layout for each vehicle design. Energy options range from 50 to 200 kilowatt hours, which could enable a GM-estimated range of up to 450 miles or more on a full charge with 0-60 mph acceleration in 3 seconds.
GM’s future Ultium-powered EVs are designed for Level 2 and DC fast charging. Most will have 400-volt battery packs and up to 200 kW fast-charging capability while GM’s truck platform will have 800-volt battery packs and 350-kW fast-charging capability.
With a 30-year history in the battery business, LG Energy Solution has made consistent, large-scale investments to accumulate enough stability, credibility and manufacturing experience to invent its own cutting-edge technologies. The company established its first research facility in the US in the early 2000s. In 2010, the company built its first US battery plant in Holland, Michigan. Today, it is the world’s second-largest electric vehicle battery manufacturer after China’s CATL
Through Ultium Cells, LG Energy Solution and GM will merge their advanced technologies and capabilities to help accelerate automotive electrification.
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