Friday, December 13, 2019
LG Chem Pushing to Set up a Battery Joint Venture with GM
GM Planning to Establish Battery Plant in the U.S.
LG Chem Pushing to Set up a Battery Joint Venture with GM
  • By Michael Herh
  • October 4, 2019, 10:08
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LG Corp. CEO Cho Joon-ho (right) and GM chairman Dan Ackerson sign an agreement on joint development of electric vehicles at GM headquarters in Detroit on Aug. 24, 2011.

LG Chem is promoting an electric vehicle (EV) battery joint venture with General Motors (GM), which is planning to establish an EV battery plant in the United States.

GM has suggested the construction of an EV battery cell plant as a negotiation card with the United Automobile Workers (UAW), which entered the third week of a walkout, according to foreign news reports Oct. 2. GM's proposal is to build an EV battery plant near its car assembly plant in Rosetown, Ohio which will be shut down, and transfer assembly line workers to the battery plant.

However, GM does not have the technology to manufacture batteries, so it needs to find a partner to establish a battery factory. LG Chem is highly likely to become GM’s battery partner, market experts say.

LG Chem and GM have maintained a strong partnership over the last decade. LG Chem was selected in 2009 as the sole supplier of batteries for GM Chevrolet Bolt, the world's first mass-produced electric car, and is now GM's largest battery supplier. In addition, LG Chem is considering establishing a second battery plant in the United States after the Michigan plant.