LG plans $2.1 billion electric vehicle battery plant with GM

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LG plans $2.1 billion electric vehicle battery plant with GM

LG Energy Solution's logo is displayed on a smartphone in front of their website, which is shown in this illustration taken December 4, 2021. REUTERS Dado Ruvic Illustration File Photo

SEOUL, January 25, Reuters - South Korea's LG Energy Solution LGES plans to spend $2.1 billion with General Motors GM.N to build a U.S. electric vehicle EV battery plant, parent company LG Chem 051910. On Tuesday, KS said something.

LGES and GM are expected to fund the project equally via Ultium Cells, their U.S.-based battery joint venture, for what will be their third joint battery plant in the United States, according to LG Chem's regulatory filings.

LGES didn't say anything about the location or production capacity of the new plant.

In December, Reuters reported that GM had proposed building a $2.5 billion battery plant near Lansing, Michigan, with LGES. LGES is responsible for more than 20% of the global electric vehicle battery market and supplies Tesla Inc TSLA.O Volkswagen AG VOWG p. DE and Hyundai Motor Co 005380. KS is amongst others.

It is already building two plants with GM in Ohio and Tennessee to manufacture 70 GWh of batteries, which could power around 1 million EVs by the year 2024, according to a report.

LGES has production sites in the United States, China, South Korea, Poland and Indonesia.

It came ahead of the company's market debut later this week, after it launched South Korea's biggest ever IPO.

The IPO attracted $12.8 trillion worth of institutional investors and $96 billion from retail investors.