GM’s battery partnership with LG Chem On Thursday, General Motors and LG Chem announced that they will split ownership of a battery-production joint venture, deepening their existing relationship. LG Chem, one of the leading suppliers of lithium-ion batteries, makes batteries for GM’s Chevrolet Bolt EV hatchback.
The companies will invest up to $2.3 billion in the joint venture and, starting in the middle of next year, they plan to begin construction of a battery factory in Lordstown, Ohio, where GM idled (and later sold) a vehicle-assembly plant earlier this year. The plant was a point of contention in the 50-day strike at GM’s US factories led by the United Auto Workers in September and October.
Demand for batteries is set to rise dramatically over the next decade as automakers increase electric-vehicle production. Competitors, like Volkswagen and Toyota, have also announced battery-focused joint ventures this year, and Tesla has operated a battery factory with Panasonic since 2016.
“It seems like, eventually, every automaker may have to do this,” said David Whiston, an industrials analyst at Morningstar.