GM venture to invest additional $275M at Tennessee plant

GM venture to invest additional $275M at Tennessee plant

NASHVILLE, Tenn. — A joint venture between General Motors and South Korean battery company LG Energy Solution announced Friday that it will invest an additional $275 million to expand a Tennessee battery cell factory for electric vehicles.

Officials with the companies had already pledged to spend $2.3 billion to build a battery plant in Spring Hill, Tennessee. The additional investment is anticipated to result in 40% more battery cell output when the plant is fully operational. Production at the 2.8-million-square-foot facility is expected to begin in late 2023.

The Tennessee plant is one the three lithium-ion battery factories being constructed by the joint venture, Ultium cells LLC. The two other factories are located in Michigan and Ohio. The fourth is also expected, but has not yet been identified.

“We are here because we believe we can succeed with your partnership,” stated Tom Gallagher (Ultium Cells vice-president for operations), noting that GM already trains employees in Poland to work at the plant. “It’s an exciting adventure that we’re on.”

Overall the three plants are expected to create up to 6,000 construction jobs and 5,100 operations jobs when completed.

U.S. Secretary Jennifer Granholm stated that the plants will strengthen the nation’s independence and support President Joe Biden ‘s goal to have electric vehicles account for half of all vehicle sales in the United States. The Department of Energy also committed $2.5 billion to Ultium Cells in conditional financing to help build the plants.

In North Carolina, Toyota announced last year that it would build a $1.3 million battery plant. Stellantis, formerly Fiat Chrysler has announced that it will build two North American battery plants. Ford currently has three plants in Kentucky, Tennessee.

Tennessee officials announced plans last month to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.

According to a memorandum signed by the state and South Korea-based LG Chem, the manufacturing facility will be constructed in Clarksville and will create more 850 job opportunities.

Republican Gov.

Republican Gov. The company plans to roll out 30 electric vehicles globally by 2025 and has pledged to invest $35 billion in electric and autonomous vehicles through that same year.

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