GM seeks to build a second battery plant in the United States

According to foreign media reports, General Motors said on March 4 that it was considering building a second battery factory in the United States with South Korean joint venture partner LG Chemical.

GM confirmed that it was considering the feasibility of building a second advanced battery plant in the United States through a joint venture with LG Energy Solution (, a battery unit owned by LG, through Ultium Cells LLC), and hoped to make a decision by June. GM shares were up 0.8% to $53.07 as of noon.

LG Energy Solution said in a statement that it was in talks with GM about further investment, but could not give details. "LG Energy Solution is also planning to expand production capacity for other global car companies in the United States," LG Energy Solution said in a statement.

Earlier, GM and LG Chemical were in advanced talks with Tennessee officials about building a plant, which is expected to be located near GM's Spring Hill plant, according to two people familiar with the matter.

They say the new plant is similar in size to the $2.3 billion battery plant in Lordstown, Ohio. The plant, which is currently under construction and will be one of the largest battery factories in the world, is expected to accelerate GM's plan to launch 30 new electric cars worldwide by 2025. GM CEO Mary Barra has said it wants to exceed its previous target of selling 1 million electric cars a year in the US and China by 2025.

In addition to the new Tennessee plant, GM expects to need more battery plants to meet its aggressive electric car targets by 2030, according to a source. In January, GM announced a bold goal to stop selling all light gasoline and diesel vehicles by 2035. GM said in October that it would invest $2 billion in Spring Hill to build electric cars, including the Cadillac Lyriq. Last year, GM said it was investing $27 billion in electric and self-driving cars over the next five years, surpassing the $20 billion planned before the outbreak.

Polly Trottenberg, the deputy secretary of transportation nominated by the US government, said on March 3 that the US Department of Transportation would analyze the impact of the ruling on the battery trade in SK Innovation (SKI) electric vehicles on the Biden administration's environmentally friendly transportation goals.

Currently, although Tesla controls most battery production in the United States, most battery manufacturing work is concentrated in Asia and Europe.