A new electric vehicle battery cell factory will get more than $3 billion in investment from General Motors and Samsung SDI of South Korea, the firms announced on Tuesday.
The new factory, anticipated to open in 2026, was not disclosed, according to a joint statement from GM and Samsung SDI.
The factory, which is expected to produce prismatic and cylindrical nickel-rich cells, will be run jointly by GM and Samsung SDI. The businesses claimed that thousands of jobs would be generated.
This is GM’s fourth joint venture manufacturing for battery cells. It has unveiled three more with LG Energy Solution from South Korea.
The construction of cells has begun at a 900-worker facility near Warren, Ohio, and sites in Spring Hill, Tennessee, and Lansing, Michigan, are in the works.
Yoon Suk Yeol, the president of South Korea, was visiting the United States when the announcement was made.
The two nations are celebrating the alliance’s 70th anniversary with a summit that included declarations on new nuclear deterrence initiatives, cyber security, and other areas of cooperation.
After some LG-made Chevrolet Bolt batteries caught fire, requiring GM to recall around 142,000 vehicles owing to a production issue, Samsung was chosen as the partner for the fourth factory. GM reported receiving a $1.9 billion reimbursement from LG for the recall cost.
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The new factory will have more than 30 gigawatt-hours when it is fully operational, bringing GM’s total U.S. battery cell capacity to nearly 160 gigawatt hours, according to the businesses.
By 2035, GM has committed to selling entirely electric automobiles. It has stated that six of its current or planned electric vehicles will be qualified for the full $7,500 U.S. federal EV tax credit due to its significant investment in battery factories and a North American EV supply chain.
The Chevy Bolt and Bolt SUV, the Chevrolet Silverado electric truck, the Cadillac Lyriq SUV, and the future Chevy Blazer and Equinox electric SUVs are among them.
According to the U.S. The Inflation Reduction Act requires the North American assembly of EVs. A certain percentage of their battery parts and minerals must come from North America or a U.S. free trade partner to qualify for the full tax credit.
The United Auto Workers union, which is working to organize other companies and secure competitive salaries for workers, has received a vote of support from the Ohio battery plant’s workforce.
Union officials have stated that they must organize the battery plants to provide workers who make engines and transmissions with a place to go when jobs manufacturing internal combustion vehicles are phased out.
Electric vehicles are built with 30% to 40% fewer labor hours and 30% to 40% fewer moving parts than conventional automobiles.