General Motors (GM) is planning to build a second battery factory in the United States. This time, they will again partner with South Korean company LG Chem. Multiple media reports claim that GM and LG Chem are close to completing a deal that will see a new battery plant built in Tennessee.
The facility will build batteries for GM’s current (and future) line of electric vehicles. LG Chem’s battery unit (LG Energy Solution) said in a statement that they are also engaged in talks to make further investments with GM. However, they would not disclose the specifics yet.
GM and LG Chem are already building a $2.3 billion battery plant in northeast Ohio. It’s expected to open in 2022 and begin supplying batteries for GM’s lineup of EVs. General Motors has promised to only manufacture EVs by 2035. That means a lot of batteries will be needed for their future models. They have already begun their move into EVs, actually. The launch of new all-electric Chevy Bolt – a redesigned hatchback and a new crossover – was the start. They each cost less than $34,000. The all-electric GMC Hummer is another one of their upcoming premier EV models.
The new Chevy Bolts are expected to be the first in a full line-up of “affordable” EVs. It appears that GM will attempt to lower the costs of its next-generation battery technologies. Having two domestic production facilities in the U.S. should help with that goal.
The EV battery market is forecast to be worth $67.2 billion by 2025, according to research firm Markets and Markets. As more and more auto brands commit to an electric future, battery technology will certain lead the way.
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