LG energy solutions, South Korea’s LG Chemical’s battery subsidiary, announced on Thursday that it will build a second battery factory in Tennessee in a joint venture with General Motors (58.48, – 0.01, – 0.02%), and will announce the specific construction plan on the 16th.
The batteries produced by the plant will be used in GM’s first pure electric concept car, the Cadillac lyriq. The cooperation is a combination of GM’s transformation strategy to electric vehicles and LG’s route to open up the U.S. market.
GM had previously set a target to stop production of fuel vehicles by 2035 and planned to invest $27 billion in electric and driverless vehicles in the next five years. LG said last month that it plans to invest more than 5 trillion won (28.8 billion yuan) by 2025 to build at least two power battery plants in the United States with a total capacity of more than 75 gigawatt hours (GWH).
After the completion of the first and second plants jointly built by LG and GM, LG’s power battery capacity is expected to reach 140 gigawatt hours (GWH) by 2025.