The American company has announced the launch of a new plant that will use a more economical battery chemistry than the Lordstown plant.
General Motors and South Korean joint venture partner LG Chem are planning to start construction of a second US battery cell plant on Friday, at a cost of $ 2.3 billion in Spring Hill, Tennessee.
According to unofficial information, the new venture will use a different, more economical battery chemistry than the one planned for the joint venture, which has begun construction in Lordstown, Ohio. The battery will be used for the Cadillac Lyriq electric crossover, which GM will begin assembling at its nearby Spring Hill assembly plant next year.
The timing of the opening of the battery plant in Tennessee is unclear, but there will be a period when the battery for the Lyriq will be supplied by another LG facility until the plant in Tennessee opens. The # 1 American automaker previously said it is exploring the possibility of setting up another battery plant in the United States with an LG battery pack, the LG Energy Solution, through its joint venture Ultium Cells LLC.
Reuters also reported that GM and LG Chem are in preliminary talks with Tennessee officials and that the plant there will be similar in size to the $ 2.3 billion Lordstown plant.
In October, GM announced it would invest $ 2 billion in Spring Hill to build electric vehicles. Last year, the Detroit-based automaker said it would invest $ 27 billion in electric and autonomous vehicles over the next five years.