General Motors and LG Chem are joining forces to invest $2.3 billion in a new battery plant near its old Lordstown Assembly complex in Lordstown, Ohio. The deal is a 50/50 partnership between GM and LG Chem and will create 1,100 jobs in the area.
Construction of the plant will begin mid-2020 at a greenfield former manufacturing site. The employees will work for the joint-venture and will not be direct GM employees. Initially, the plant will solely supply batteries for GM vehicles, though with a maximum capacity of 30 gigawatt-hours annually, the company could expand to supply other manufacturers as well.
GM and LG Chem are forming this joint venture in an attempt to bring down the unit cost of batteries for future vehicles. The plant's capacity, once completed, will be among the largest in the world.
General Motors has said it wants to introduce 20 electric vehicles globally by 2023.