GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin on the automaker’s battery lab in Warren, Mich., the place the businesses introduced a brand new $2.6-billion three way partnership on Dec. 5, 2019.
GM
DETROIT – General Motors and LG Energy Solution have indefinitely shelved plans to construct a fourth battery cell plant within the U.S., as talks between the 2 sides lately ended with out an settlement, an individual aware of the plans confirmed to CNBC.
The Detroit automaker is anticipated to proceed with its plans to construct the plant however is looking for one other associate, in response to the one that requested to not be named as a result of the talks are non-public.
“We’ve been very clear that our plan includes investing in a fourth U.S. cell plant, but we’re not going to comment on speculation,” GM mentioned in an emailed assertion.
The Wall Street Journal first reported talks had stalled between GM and LG on the fourth plant, which was anticipated in Indiana. The paper mentioned GM is in discussions with a minimum of one different battery provider to proceed with the fourth U.S. battery-cell manufacturing facility.
The breakdown in talks comes after GM CEO Mary Barra and different executives have mentioned they have been near saying particulars of the fourth plant for a while.
GM and LG initially introduced the joint-venture for a $2.3 billion plant in Ohio in December 2019, adopted by different vegetation close to GM operations in Michigan and Tennessee. Only the Ohio plant is at the moment working, whereas the others are beneath building. The three way partnership is named Ultium Cells LLC.
This is a growing story. Check again for extra particulars.