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.
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.
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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.
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.
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.
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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.
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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.