Home Markets GM, LG end plans for fourth US battery factory; the car company is looking for a new partner

GM, LG end plans for fourth US battery factory; the car company is looking for a new partner

by SuperiorInvest

GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin at the automaker’s battery lab in Warren, Michigan, where the companies announced a new $2.6 billion joint venture on Dec. 5, 2019.

GM

DETROIT – General Motors and LG Energy Solution have indefinitely postponed plans to build a fourth battery factory in the U.S. after talks between the two sides recently ended without an agreement, a person familiar with the plans confirmed to CNBC.

The Detroit automaker is expected to continue with its plans to build the factory, but is looking for another partner, according to the person, who asked not to be named because the talks are private.

“We have been very clear that our plan includes an investment in a fourth cell manufacturing plant in the US, but we will not comment on speculation,” GM said in an emailed statement.

The Wall Street Journal first reported negotiations between GM and LG for a fourth plant that had been expected in Indiana stalled. The newspaper said GM is in talks with at least one other battery supplier to pursue a fourth U.S. battery factory.

The breakdown in talks comes after GM CEO Mary Barra and other executives said they have been close to announcing details of a fourth plant for some time.

GM and LG initially announced a joint venture for a $2.3 billion plant in Ohio in December 2019, followed by other plants near GM operations in Michigan and Tennessee. Currently, only the Ohio plant is operational, while others are under construction. The joint venture is called Ultium Cells LLC.

This is a developing story. Check back for more details.

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