GM, LG Chem form joint venture to make batteries near Lordstown

DETROIT—General Motors Co. and LG Chem Ltd. will invest a combined $2.3 billion to mass produce battery cells in northeastern Ohio, near its former Lordstown assembly plant.

A 50-50 joint venture between GM and the South Korean battery maker aims to create 1,100 jobs. GM and LG Chem plan to start building the plant in mid-2020 on a greenfield manufacturing site.

With the investment, GM expects to reduce the cost of making electric vehicles, and said it plans to introduce 20 EVs globally by 2023.

The plant will have an annual capacity of more than 30 gigawatt-hours, making it among the largest in the world, with potential for expansion, a GM spokeswoman said.

"Ohio and its highly capable work force will play a key role in our journey toward a world with zero emissions," CEO Mary Barra said in a statement. "Combining our manufacturing expertise with LG Chem's leading battery-cell technology will help accelerate our pursuit of an all-electric future."

The battery cells will be used in GM's future EV lineup, including the electric pickup Barra previously announced.

Employees will work for the joint venture, not GM for directly, and decide whether to unionize, the spokeswoman said.

Initially, the joint venture will provide batteries only to GM plants, the spokeswoman said. It could decide to supply other companies in the future.

The partnership also includes a joint development agreement between GM and LG Chem.

Disclosure of the new partnership is another indication of the steps that GM is taking to help solidify its place in the development and manufacturing of electric vehicles. The company recently said it would cut about 800 jobs at its Detroit-Hamtramck Assembly plant in an effort to prepare for electric vehicle production in February.

GM's Lordstown complex ended production in March and became permanently closed under the labor contract signed with the UAW this fall. Last month, GM sold the plant to Lordstown Motors Corp., a new company affiliated with Ohio-based EV maker Workhorse Group that plans to build electric pickups for commercial customers.