GM, LG Energy Solution looking at Indiana for battery plant
The proposed Indiana plant would join others the companies' joint venture will have in Ohio, Michigan and Tennessee
General Motors and LG Energy Solution are considering building a battery cell manufacturing plant in Indiana.
It would be the fourth battery plan developed by the companies' Ultium Cells LLC joint venture.
A spokeswoman for the joint venture said New Carlisle, Indiana is being looked at for the potential investment and Ultium had submitted a tax abatement application that it hopes will be approved later this month.
The company's first U.S battery cell plant in Warren, Ohio is set to begin later this month.
FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan. (REUTERS/Rebecca Cook / Reuters Photos)
In January, GM and LG announced a $2.6 billion investment to build a new battery cell plant in Lansing, Michigan set to open in late 2024.
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GM also said then it would spend $4 billion to overhaul and expand an assembly plant near Detroit to build electric pickup trucks and be supplied by the Lansing battery plant.
FILE PHOTO: An employee walks past the logo of LG Energy Solution at its office building in Seoul, South Korea. (REUTERS/Kim Hong-Ji / Reuters Photos)
GM and LG Energy are also building a $2.3 billion plant in Spring Hill, Tennessee set to be completed by the end of 2023.
The fourth plant is expected to be similar with an investment of more than $2 billion, a source briefed on the matter told Reuters.
It is not known when the plant would start operations.
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Last month, the U.S. Energy Department said it would loan Ultium $2.5 billion to help finance construction of battery cell manufacturing plants in Ohio, Tennessee, and Michigan.
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GM said in July it struck multi-year agreements with LG Chem Ltd and Livent Corp to secure key raw materials used in manufacturing batteries for electric vehicles.
President Biden signed legislation this week imposing new sourcing rules on battery components and critical minerals that take effect Jan. 1 for electric vehicles to be eligible for $7,500 in tax credits.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.67 | +0.79 | +1.44% |
Biden wants half of all U.S. vehicle production by 2030 to be electric or plug-in electric.
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In May, Chrysler-parent Stellantis NV and Samsung SDI said they will build a new joint venture battery plant in Kokomo, Indiana.
Reuters contributed to this report.