GM-LG Joint Venture Battery Plant in Ohio Starts Operations
- September 1, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
The General Motors (GM)-LG Energy Solution (LGES) joint venture $2.3 billion battery manufacturing plant in Ohio has started production. The 2.8-million square foot Ultium Cells LLC plant is the first of at least four plants planned in the U.S. by the joint venture to supply GM electric vehicles.
Ultium Cells said the Warren plant, which was announced in 2019, has more than 800 employees and is preparing to further ramp up production. The company said it plans to have 1,300 workers by next year when it reaches full capacity.
Meanwhile, Honda and LG Energy had also decided to open a $4.4 billion battery plant in the state. The two companies are discussing possible locations.
Earlier this month, GM and LG Energy said they were also considering a site in Indiana for a fourth U.S. battery cell manufacturing plant expected to cost around $2.4 billion.
In January, the joint venture a $2.6 billion investment to build a new battery cell plant in Michigan set to open in late 2024.
Ultium is also building a $2.3 billion plant in Tennessee to be completed by the end of 2023.
Last month, the U.S. Energy Department said it would loan Ultium $2.5 billion to help finance construction of battery cell manufacturing plants in Ohio, Tennessee, and Michigan.
Legislation signed this month by President Joe Biden imposes new sourcing rules on battery components and critical minerals that take effect Jan. 1 for EVs to be eligible for $7,500 tax credits.
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