General Motors and LG Energy announced they will invest an additional $275 million to expand their battery cell manufacturing joint venture in Spring Hill, Tennessee, with the goal of increasing production by more than 40 percent.
The new investment between the two technology hubs adds to the $2.3 billion announced in April 2021 to build a 2.8 million-square-foot joint venture facility, known as Ultium Cells LLC, which is expected to begin production at end of next year 2023.
The new investment between the two companies should increase the total capacity of the plant from 35 GWh to 50 GWh when fully operational.
and upon its completion; Ultium Cells LLC’s Tennessee facility will join the two companies’ other shared battery cell manufacturing sites in Ohio and Michigan (which is also under construction and is expected to begin production in late 2024). General Motors and LG are also considering building a fourth site valued at $2.4 billion in New Carlisle, Indiana.
Domestic production of battery cells in North America is seen as crucial for automakers in the coming years to increase their electric footprint and receive federal incentives under the Biden administration’s new inflation-lowering law.
“Our dual battery cell manufacturing venture will play an important role in making GM’s commitment to an all-electric future a reality,” said Tim Herrick, GM vice president. The investment in the new Spring Hill location will help the company provide customers with the broadest EV portfolio of any automaker and further solidify our path to EV leadership in the United States.”
