LG Energy Solutions (LGES) and General Motors Co. (GM) announced that will spend US$2.1 billion to build another electric-vehicle battery factory in America.
LGES and GM are expected to fund the project equally via Ultium Cells, their U.S.-based battery joint venture, for what will be their third joint battery plant in the United States – according to LG Chem’s regulatory filings showed.
Last month, Reuters reported that General Motors had proposed building a $2.5B battery plant near Lansing, Michigan, with LGES. However, no details were providen by both companies regarding the location of the new factory or its production capacity. LGES has production sites in the United States, China, South Korea, Poland and Indonesia.
According to documents made public last month, GM is considering investing more than $4 billion in two Michigan plants to boost its electric vehicle production capacity.
The announcement came ahead of the company’s market debut later this week after launching South Korea’s biggest ever IPO. The IPO price values LGES at about 70.2 trillion won ($58.57 billion) and will make it South Korea’s third most-valuable company after Samsung Electronics Co and SK Hynix Inc.