LG Chem and General Motors will open a joint venture factory in the U.S. state of Ohio to make battery cells for electric vehicles.
The Korean chemical company said Friday that the two firms will each invest 50 percent up to a total of two.three billion U.S. dollars by 2023.
The plant will make battery cells for GM's upcoming range of all-electric vehicles.
Construction of the plant is set to begin in mid-2020 and the factory is expected to create more than 11-hundred jobs in the city of Lordstown, Ohio, which lost thousands of jobs when GM closed its assembly plant there last March.
The joint venture plant's annual capacity will reach more than 30 gigawatt hours, compared to 20 gigawatt hours at Tesla's Gigafactory in Nevada.
At a media event at GM's battery lab in Michigan on Thursday local time, LG Chem Vice Chairman and CEO Shin Hak-cheol described the joint venture as more than just a mere collaboration, saying that it marks the beginning of a great journey that will transform the global automotive market into an eco-friendly era.
GM CEO and Chairman Mary Barra said the combination of GM's manufacturing expertise and LG Chem's leading battery-cell technology will help scale production and enhance electric vehicle profitability and affordability.
LG Chem expects its battery business to grow to 25 billion U.S. dollars by 2024. It currently provides battery cells for GM’s Chevrolet Bolt electric car among others.
The Ohio plant will be the LG Chem's second battery-making facility in the U.S. following its Michigan plant built in 2012.
Kim Hyesung, Arirang News.