GM and its partner LG Energy Solution worked together to build three Ultium Cells plants in the U.S. so far to produce Ultium batteries for The General’s growing lineup of electric vehicles. The two companies originally planned to construct a fourth Ultium Cells factory in Indiana. However, LG Energy is now unwilling to proceed, putting the fourth facility in temporary limbo.
LG Energy is apparently deterred by the speed and scope of battery production needed to meet GM’s EV timetable. According to a AutoForecast Solutions, LG Energy is unwilling or unable to commit to handling the electrochemical processes and reactions at the scale necessary to achieve GM’s battery manufacturing targets.
Large battery manufacturing volumes are needed to support GM’s planned electric vehicle breakout in 2023 to 2025. If successful, the initiative will result in GM building one million EVs annually by 2025. This production volume is expected to position The General as the electric vehicle market leader, ahead of Tesla. It will also necessarily require successful manufacture of a million batteries per year.
LG Energy is not confident it can meet these goals, but several other factors may have contributed to its unwillingness to build the fourth Ultium Cells plant with GM. For instance, LG absorbed $1.9 billion out of $2 billion in expenses resulting from the 2021 recall of 140,000  Chevy Bolt EV and Chevy Bolt EUV units.
This recall – following spontaneous combustion of batteries in some examples of the Bolt models – and the costs involved apparently caused friction between GM and LG. The partners also disagreed over the details of a United Auto Workers (UAW) vote resulting in unionization of Ultium Cells Lordstown in Warren, Ohio.
GM still intends to build the fourth Ultium Cells plant in Indiana, and is seeking a new partner to replace LG Energy Solution. It is in contact with several potential candidates but has not revealed which companies are in the running.
EV battery supplier SK On, a wholly-owned subsidiary of South Korean energy-sector holding company SK Innovation, is possibly the only company besides LG Group currently able to work with the stackable long pouch cell form factor of Ultium batteries. However, if GM opts to change the form factor of Ultium cells going forward, a move that is highly unlikely, the range of possible partner companies increases markedly.
GM’s current lineup of battery plants includes the aforementioned Ultium Cells Lordstown in Warren, Ohio, which is already operational, Ultium Cells Spring Hill in Tennessee, currently under construction and scheduled to launch production in late 2023, and Ultium Cells Lansing in Michigan, also under construction and expected to open in late 2024.
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Comments
If GM changes cell chemistry to LFP, just as Ford and Tesla has done, then it need a different partner and plant to make them. These cells are safer (fire resistant), cheaper (no special metals), and more resistant to multiple full charge and discharge cycles. The best part is that all three elelements, lithium, iron, and phosphorous, are cheap and avaliable in the U.S.
Also noticeably less energy dense…
And heavier.
I would say LFP are great for Grid Storage. And cheaper non performance vehicles as well.
GeorgeS I am all for American made, but there are simply Not enough workers in my area, that’s not my opinion, it’s a fact. Would you give up your seniority, accrued Vacation, much higher wages, a steady shift instead of a # days on/days off varying shift, working in a safe environment, But, there’s already 2 jobs for each person here, so adding more, I hope they bring offers people can’t resist, or they’ll end up losing $ & we’ll be stuck with an empty building
Evidently despite the free Biden bucks even LG isn’t convinced that vision 2030 is achievable. Remember LG is building these plants and is the primary investor in the ropes is the EV revolution doesn’t happen. Looks like despite ESG’s and all the mandates that they don’t believe it will happen.
You might look into it, but I don’t think LG makes LFP batteries!
There aren’t enough workers for Any large plant to build in New Carlisle, Indiana. (Toyota didn’t build here for that reason a few years ago).A local newspaper for this area had an article in yesterday’s paper on ‘Indiana Jobs’, as of December, there are literally “more than twice the job openings than unemployed workers.” IF GM intends on luring workers from other jobs, they’ll need to pay at least $30 an hour. Good employees won’t walk away from accrued Vacation, Benefits, PTO, etc. at their current jobs.
Mary your comments are noteworthy, but it is the very reason why companies go to China, Mexico and elsewhere. All those days off, benefits, medical, union protection of jobs adds huge cost. Sure I want American built products but it does get to a point where can we afford it. When a Korean $30K vehicle sitting next to a $40K American made vehicle, that $10K speaks loud words. There is hope, Honda, Toyota and Hyundai do build in the USA.
GeorgeS I am all for American made, but there are simply Not enough workers in my area, that’s not my opinion, it’s a fact. Would you give up your seniority, accrued Vacation, much higher wages, a steady shift instead of a # days on/days off varying shift, working in a safe environment, But, there’s already 2 jobs for each person here, so adding more, I hope they bring offers people can’t resist, or they’ll end up losing $ & we’ll be stuck with an empty building
In the next 5-10 years the auto industry will realize battery-operated vehicles were a huge mistake for many reasons. Reliability, crashing electrical grid infrastructure, reliability of charging stations, environmental, safety, cost, etc. Even Elon will tell you EVs are not the future. We will return to ICE, and hydrogen-powered vehicles until more reliable energy sources are developed. Used EVs will be worth pennies on the dollar while ICE vehicles old and new will be worth thousands more.
99% of my charging is at home and absolutely reliable. And if one has solar that produces enough it does not put a drain on the grid. But ya all keep pushing for the fossil fuels and complain when costs are high yet if one goes back in time from the 70s 80s 90s 2000s and on gas should be $4 bucks a gallon! And the cheapness along the way has only been because of all their handouts of writeoffs to the oil industry. Now I am not saying it is or should all go away but if the every day driver can live easily within 95% of their daily driving and once in a while distance driving…whats the issue…as it saves more of the oile to be used for better things…heavy equipment, etc…
So I wonder what happens to honda if lg bails on gm.
Ice vehicles are done!!! If the leaders of the world could work together we would have been zero emissions 50 years ago! But greed and a lust for power is killing our planet. Just the last 120 years or so has been a total disaster for our world! And no getting rid of ice vehicles will not solve all our problems but it’s something that must be started it’s only one step!!!
@Tyrone A
I do not believe we had the proper Battery Tech until recently. Yes you can argue that had these Companies kept innovating we might be there quicker but I do not see it. Customers would have had to settle back in say the 80’s on range and speed of charge whereas now we mostly do not have to. A BEV today can replace like at least 80% of the Auto Sector options and that will just keep growing.
The Tech we have currently is gonna keep becoming better and better at an exponential clip.
By 2035 I would say it will take Five Minutes to charge and 300 Miles per Charge will become the Bare Minimum. And that could happen even quicker than 2035
You mean the last 120 years where the life expectancy has doubled? Where Africa in 1950 had a population of 225million including European colonist has now blossomed to just shy of a billion even after colonist have retured? How India and Chinas population has doubled? How capitalist philanthropist are going around to 3rd world communist countries and curing aids and blindness because they’re bored and don’t know what do do with their money? (Ever heard of Mr. Beast? Coke brother? Bezos? Catholic charities?)
You know, there was a time in the olden days when man worshiped Gaia, and 2/3rds of Rome was slaves and happy to be so, because it was better than being sacrificed to pagan gods or eaten. That was a time called the PAX Roma in history
PAX Americana has far exceeded all expectations. Heavens please don’t let that come to an end.
Look EV is here and it is not going away. The mfgs did not choose it because they wanted it. Due to the situation dealt to them they had to go to it.
The EV models will work for most but not all people and Applications. The question is will they back off the changes some or not.
Look some of you act as if GM came up with the EV models all on their own. The truth is if not forced by regulation there would be much less investment going on industry wide.
What is funny is we have a political staff in DC forcing these rules but not willingly to work to oversee the rail spill in Ohio that is a real problem.
While I agree 100% with you about the corporate ESG push, but I Dissagree that the ESG push will succeed in any way long term,but that’s mostly because the current war on the power grid and how it’s turning out. Rolling blackouts are commons in the west, and are coming to the northeast and the south. Old coal plants and nuclear plants in the northeast are being shut down. No new coal or natural gas plants are being built in the south where people are fleeing to.I have a coworker in Florida and they are common in Miami country in the summer. Will be worse as more houses are added and businesses move there. depending on who wins the White House next there are 2 futures,
1, gov incentivized BEV’s, insane regulations on ICE to push it out of business, but who will buy an EV when rolling blackouts make even a partial charge impossible? Most will have a backup generator anyways, so why not stick with ICE cars as your already running your house off gas. That is also assuming we don’t become like Cuba and there is a new car market for the middle class.
2, end of ESG’s, reopening of anwar, reduced emissions, end of carbon credits and no BEV incentives. That will kill all BEV investment, and probably only Tesla will be left standing and as a niche vehicle.
Neither are rosy for BEV’s.
@CR.8
Unpopular opinion but here goes…
I think the Switch to BEV’s has a lot more to do with the Top World Economies not wanting to lose their Automotive sector to China since Tesla upended everything. The younger Gen (for the most part, not all) want BEV’s.
The biggest accelerator unfortunately was just how insanely quick China reacted to Tesla and realized that BEV’s was their way to finally compete in the World Stage in the Auto Sector and without hesitation pivoted to BEV’s. That most likely took the Legacy Automakers by surprise as they did not actually start reacting to Tesla dominating (they all wrongfully thought Tesla was just a Silicon Valley Joke) but only when they realized they were selling less and less cars in China (which most Legacy needs those sales desperately) they basically they only had ICE vehicles to sell and the market shifted on them overnight.
So everyone can call out the so Called Liberals or Biden or whatever (Lets remember that China is a Communist Country and Europe is littered with Conservative and Liberal Leaders) for taking your ICE vehicles away but it isn’t the case. It isn’t about going Green as one can see by the insane amount of money the Worlds Governments give Big Oil in subsidies. This shift has absolutely nothing to do with Politics but simply economics. Automakers in Japan, Europe, South Korea, and here in the States are finally reacting to the new Landscape that Tesla started so they can stay alive!!!
Key take away is unfortunately China reacted with insane speed and Legacy set back doing nothing. Now they are scrambling and begging their Governments for Subsidies to try and compete and stay alive.
The longer we can keep Chinese Automakers away from selling here (which will obviously happen one day) the longer that Chrysler, Ford, and GM can take to add BEV’s to their lineup and stay alive if not even prosper.
Other than Tesla isn’t really all that good of a car, is terribly unaffordable, and isn’t bull well. It’s just cool like Apple
I still don’t know who will buy all of GM’s planned EV’s. I don’t know anyone who has one or wants one. Now that gas is about $3 there’s no incentive to switch from the convenience of ICE. The push to EV’s reminds me of the rooftop solar scam going on now, it doesn’t pay out.
EV’s are fine, however to even think it will stop the Climate Change is a joke. We humans have no control over it. The earth naturally produces the most green house gases. So we got rid of smog in the 70’s and 80’s because of chance of global cooling. Now we have to get rid of CO2 which every living thing on earth produces and plants use to grow. This is getting stupid, we humans will kill ourselves before nature ever does. Just remember nothing Al Gore said over 20 years ago has happenned..not 1 thing. He did however become rich off his lies and false science.
And what we we be like if what 7 billion humans did not exist today compared to then?
Never for a minute did I think I was saving the planet when I purchased my Bolt a couple of years ago. After winning a raffle from my electric CO-OP I won the use of one of their Bolts for the weekend and knew that my next vehicle was going to be a BEV.
I’ve got my name on the reservation list for a 24 Blazer EV SS, hoping that its in my garage by the end of the year. Can’t wait to compare the driving experience to my C7, which is fortunately a drop top so it will still get plenty of use. Sure, due to the price many of the higher powered BEV’s are out of reach for the average consumer, but there are plenty of lower priced BEV’s available now, the BOLT being one of the best values for the money. I know you said EV’s are fine but many on this site are badmouthing them without experiencing them and just showing their ignorance.