DETROIT — Common Motors and South Korean joint-venture associate LG Vitality Resolution on Friday stated they’ll construct a second U.S. battery cell manufacturing plant, revealing plans for a $2.3 billion manufacturing facility in Spring Hill, Tennessee.

The deliberate 2.8 million-square-foot plant, scheduled to open in late 2023, will make use of 1,300 individuals and may have manufacturing capability of about 35 gigawatt-hours, just like the businesses’ Ultium Cells joint-venture plant in Lordstown, Ohio, as they transfer to reply to the rising demand within the electrical automobile market. The plant’s capability would allow it to provide battery packs for greater than 500,000 electrical autos a yr.

“The addition of our second all-new Ultium battery cell plant within the U.S. with our three way partnership associate LG Vitality Resolution is one other main step in our transition to an all-electric future,” GM Chief Govt Mary Barra stated.

The United Auto Staff on Friday known as on GM to make sure the brand new plant is staffed with union-represented staff, which GM officers have stated can be decided by the staff.

LG Chem stated in a regulatory submitting that its LG Vitality Resolution unit will make investments $933.5 million within the plant between this yr and 2023.

GM and LG Vitality Resolution will use a special, less-expensive battery chemistry in Tennessee than the one for use within the Lordstown plant that opens subsequent yr, sources beforehand advised Reuters.

Sources have stated the No. 1 U.S. automaker will want extra battery crops past Tennessee to satisfy aggressive EV targets, together with projected gross sales of greater than 1 million EVs globally in 2025. GM’s longer-range goal consists of halting gross sales of light-duty gasoline and diesel-powered autos by 2035.

Most battery manufacturing is presently concentrated in China and Korea, whereas Tesla and Japanese associate Panasonic largely management most U.S. battery manufacturing.

When it opens, the brand new GM-LG battery plant will provide batteries for the Cadillac Lyriq crossover EV that GM is slated to start out constructing at its close by Spring Hill meeting plant subsequent yr. LG is predicted to provide the batteries from Korea till then.

Provider sources stated a second Cadillac electrical crossover, known as Symboliq, is predicted to affix the Lyriq in manufacturing at Spring Hill in 2024, together with two new electrical crossovers for Honda and its premium Acura model.

GM stated in October it might make investments $2 billion in Spring Hill to construct EVs. The Detroit automaker stated final yr it was investing $27 billion in electrical and autonomous autos over the following 5 years.

GM is predicted to construct EVs in 5 North American crops by 2025 — two in Michigan, and one every in Tennessee, Ontario, Canada, and Mexico, in accordance with analysis agency AutoForecast Options.

LG Vitality Resolution stated final month it deliberate to speculate greater than $4.5 billion in U.S. battery manufacturing over the following 4 years, together with plans to construct at the very least two new crops.

The growth of electrical autos with GM was anticipated to contribute to the “success of the U.S. Inexperienced New Deal coverage,” LG Vitality Resolution CEO Kim Jong-hyun stated in a press release, including LG will “focus extra on establishing a secure provide chain system that’s differentiated and secure inside the U.S., from R&D to manufacturing of batteries to uncooked supplies.”

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