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Business

GM, LG Energy Solution look to Indiana for battery plant




General Motors and LG Energy Solution are considering building a battery cell factory in Indiana.

It would be the fourth battery plan developed by the companies’ Ultium Cells LLC joint venture.

A spokeswoman for the joint venture said New Carlisle, Indiana is being looked at for the potential investment, and Ultium had submitted a tax abatement application that it hopes will be approved later this month.

The company’s first US battery cell plant in Warren, Ohio is set to begin operations later this month.

GM, LG Energy Solution look to Indiana for battery plant

FILE PHOTO: The new GM logo is seen on the facade of General Motors headquarters in Detroit, Michigan. (REUTERS/Rebecca Cook/Reuters Images)

In January, GM and LG announced a $2.6 billion investment to build a new battery cell plant in Lansing, Michigan, set to open in late 2024.

CADILLAC LYRIQ IS SOLD OUT FOR 2023

GM also said it would spend $4 billion to overhaul and expand an assembly plant near Detroit to build electric pickup trucks and be supplied by the Lansing battery plant.

LG Energy Solutions office

FILE PHOTO: An employee walks past the logo of LG Energy Solution at the office building in Seoul, South Korea. (REUTERS/Kim Hong-Ji/Reuters Photos)

GM and LG Energy are also building a $2.3 billion plant in Spring Hill, Tennessee, to be completed by the end of 2023.

The fourth plant is expected to be similar with an investment of more than $2 billion, a source briefed on the matter told Reuters.

It is not known when the plant will start up.

Cadillac Lyric

Defined by tight lines and clean surfaces, the LYRIQ is confident and modern, characterized by a low, fast roofline and wide stance that emphasizes agility and conveys confidence. Additional details, such as a flow-through roof spoiler, express the caution (Cadillac/Fox News)

Last month, the US Department of Energy said it would lend Ultium $2.5 billion to help finance construction of battery cell factories in Ohio, Tennessee and Michigan.

AUTOMAKERS SAY 70% OF EV MODELS DO NOT QUALIFY FOR TAX CREDITS UNDER SENATE BILL

GM said in July it entered into multi-year deals with LG Chem Ltd and Livent Corp to secure key raw materials used in the production of batteries for electric vehicles.

President Biden this week signed legislation introducing new procurement rules for battery components and critical minerals that take effect Jan. 1 for electric vehicles to be eligible for $7,500 in tax credits.

Ticker Safety Last Change Change %
GM GENERAL MOTORS CO. 38.72 +0.32 +0.83%

Biden wants half of all American car production by 2030 to be electric or plug-in electric.

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In May, Chrysler parent Stellantis NV and Samsung SDI said they will build a new joint venture battery plant in Kokomo, Indiana.

Reuters contributed to this report.



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