GM and LG Energy are no longer planning the build a new Ultium battery production facility in Indiana, a recent report states.
Per The Wall Street Journal, talks between GM and LG Energy have ended without an agreement regarding a fourth Ultium battery plant in the U.S. So far, GM and LG Energy have three U.S. battery facilities in place, one of which is already in operation in Ohio. The other two are currently under construction in Tennessee and Michigan, with a total investment of more than $6.5 billion.
The new facilities were developed under Ultium Cells LLC, a joint venture between GM and South Korean battery supplier LG Energy. The two companies originally had plans to launch a fourth facility in Indiana, but according to the report, talks have ended without an agreement due to hesitation on the part of LG Energy over the rapid pace of LG’s most recent U.S. investments, which also include a new battery facility in Ontario with Stellantis, and a joint factory in Ohio with Honda. The report goes on to state that an uncertain macroeconomic outlook is another factor in LG’s hesitation to invest in a fourth battery facility with GM.
GM and LG Energy have also reportedly disagreed over the rate at which production should be ramped up at the Ohio facility, with GM pushing for a faster production start than LG executives. Unionization has been another sticking point, with GM supporting a less-formal, faster “card check” process, and LG supporting a formal election. Workers at the Ohio facility voted for representation by the United Auto Workers in December.
GM is apparently still considering Northwest Indiana as the location for a new battery cell facility. Going forward, GM is reportedly in discussions with at least one other battery supplier to lock in a fourth U.S. production facility.
This massive influx of new battery cells is required for GM to hit its stated goal of producing 400,000 EVs by the 2024 calendar year. The goal was originally to hit 400,000 units by the end of 2023, but the date was pushed back six months to early 2024 due to a “slightly slower launch” of battery and cell production.
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Comments
Foolish on the part of LG Chem, I think.
Hopefully GM can quickly line up another supplier.
Everyone was saying when the economy changed that EV’s would be on the chopping block. Well, here it’s coming true
The bigger issue is why aren’t the U.S. and Canada not building or using existing plants to build chips for vehicles instead of depending on Asia..start doing in-house production again
New chip plants are allegedly under construction. The old factories are so far out of compliance with EPA and so obsolete it is cheaper to build new.
Cause GM closed its Chip plant in 2017! Then used it to make ventilators! Too woke to address the problems, which doesn’t get press!
This is huge. I hope there will be more articles coming on this bombshell. It seems gm has put all its eggs in this one basket and LG just ripped the bottom out.
Pretty scarry when the expert building your EV batteries says you are moving too fast on EVs and cannot sell the capacity of the plants you are already building.
Someone needs to keep Mary from the roof of the RenCen.
Very wise move. This mass move into electric vehicles is going into dangerous uncharted waters. Musk is freaking out, with Tesla offering deep discounts which is a sign of panic. Oceans of EV’s are being released. Many millennials look at GM as fuddy duddy and prefer Asian makes.
This winter has been a reality check on reduced distance range especially on the Ford F150 Lightening. The EV thing has gone from hot trendy to luke warm.
Best not to go total “ALL IN ” on a new thing but take it cautiously in stages.
Tesla first rung the bell for mass electrics with the plug and play millennial and geek crowd. The market to this group is saturated now and Tesla sales have slowed. Korean and Japanese electrics are filling new gaps.
It’s a very confusing world now for any automaker. Toyota is playing their cards close to their chest. When Honda comes into full play with their electrics this will be a big nemesis to GM, as Honda has a great image with the 16 to 45 year old age crowd – the target market.
The EV craze has the makings of a classic bubble much like autonomous vehicles a few years ago. A lot of OEMs are now seeing that customers want what they want- despite mandates by clueless government.
So why did Honda partner with GM on their EV cars?
All in strategy for 1 energy source to propel vehicles is a recipe for disaster. Gas, electric, hydrogen, ng, electric all have their place. Don’t listen to stupid politicians, follow the money. It’s a money grab. Lol.
General Motors and Samsung SDI are in talks
Looks like the Asian battery makers are going to dominate this major component. Where is USA brainpower? Players like Emerson, Eaton, Honeywell, United Technologies, et. al. ??? Hello?
I think those folks realize the tech for what the automakers want is decades away and they are smart enough to protect their shareholders from this future EV financial disaster looming.
These battery plants will soon become giant Amazon warehouses. EV makers are moving way to fast on this EV fantasy. EV vehicle prices are way to high for a huge chunck of the vehicle market and stock shareholders are not going to stand for break even pricing to attract buyers. Shareholders want return on investment. This will be fun to watch 🙂 LOL
It’s funny people leave post like EV revolution is not going to happen. Every car manufacture is going EV listen to earnings call, it’s just a matter of how fast they can get there. Just because some things have to be figured out along the way doesn’t mean it’s a bubble about to pop. I remember a 56k dial up modem and the internet sucked so bad you smashed your keyboard, now it just life, EVs will be same.