It is known that LG Energy Solutions is delaying discussions on the construction of its fourth electric vehicle battery joint plant in the United States with General Motors (GM), an American automobile company.
The Wall Street Journal (WSJ), citing industry sources, reported that negotiations for the construction of the fourth joint plant between LG Energy Solutions and GM management had ended without an agreement. GM plans to build a fourth battery plant in the US.
WSJ reported that the two companies’ electric car battery continued cooperation is going out of the way with LG Energy Solution’s lukewarm attitude. It is reported that GM is negotiating with at least one other joint venture partner candidate other than LG Energy Solutions. It is known that they are discussing cooperation in the electric vehicle battery business with domestic and foreign battery partners. An official from LG Energy Solutions said, “There is no decision regarding the establishment of an additional battery joint venture.”
GM plans to sell 1 million electric vehicles per year in the US by 2025. A GM official said through the WSJ, “We will definitely build a 4th battery factory in the US.”
The two companies have been discussing an additional joint venture for electric vehicle batteries, but negotiations have been delayed. This is because the burden of the global economic downturn and uncertainty in the business environment is high, and additional cooperation with other automakers as well as three joint venture plants with GM is scheduled.
In 2019, GM first installed LG Energy Solutions electric vehicle batteries in the Chevrolet Volt. At the request of GM, it established Ultium Cells, an electric vehicle battery joint venture in the United States. Ultium Cells has operated or plans to build electric vehicle battery joint ventures in Ohio, Tennessee, and Michigan.
Starting with GM, LG Energy Solutions plans to build additional joint factories in the US with Stellantis in the US and Honda in Japan. According to the industry, Toyota and Hyundai Motors of Japan are being discussed as additional joint venture partners for LG Energy Solutions in the United States.
An official from the battery industry said, “LG Energy Solutions is discussing a joint venture with GM in the US, but it has also secured other automotive customers.” ” he said.
Reporter Kim Ji-woong [email protected]