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GM confirms $2.3 billion investment with LG in battery cell gigafactory in Tennessee

GM has confirmed a $2.3 billion investment in partnership with LG Energy Solutions to build a new battery cell gigafactory in Tennessee.

The project was already reported by industry sources earlier this week, but it has now been confirmed by the automaker in a new press release:

Ultium Cells LLC, a joint venture of LG Energy Solution and General Motors, today announced a more than $2.3 billion investment to build its second battery cell manufacturing plant in the United States. The facility will be located in Spring Hill, Tennessee.

GM didn’t confirm the planned capacity of the plant, but with a $2.3 billion investment, it is expected to be quite significant.

It will be a 2.8 million-square-foot facility and construction is going to begin immediately for a start of production in late 2023.

This is the second battery factory under the Ultium Cells LLC joint venture between GM and LG.

The first one is a battery cell factory in Lordstown, Ohio.

GM Chairman and CEO Mary Barra commented on the announcement of the second factory:

The addition of our second all-new Ultium battery cell plant in the US with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future. The support of the state of Tennessee was an important factor in making this investment in Spring Hill possible, and this type of support will be critical moving forward as we continue to take steps to transition our manufacturing footprint to support EV production.

LG Energy Solution President and CEO Jonghyun Kim added:

This partnership with General Motors will transform Tennessee into another key location for electric vehicle and battery production. It will allow us to build solid and stable US-based supply chains that enable everything from research, product development, and production to the procurement of raw components. Importantly, I truly believe this coming together transcends a partnership as it marks a defining moment that will reduce emissions and help to accelerate the adoption of EVs.

GM says that the new factory is going to use ” the most advanced and efficient battery cell manufacturing processes.”

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