Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

General Motors (GM) is planning to build a second battery factory in the US, as part of its joint venture with Korea’s LG Chem. The Detroit carmaker is currently exploring locations for the facility and is anticipated to make the call during the first half of 2021, according to a GM spokesperson. 


Media reports hinted at a location near the company’s Spring Hill, Tennessee center which is one of three selected facilities for its electric vehicle (EV) construction plans. The other two EV factories are in Detroit and Michigan.


The JV will build the first $2.3bn battery plant in Northeast Ohio, near Cleveland, with plans to open in 2022. The venture will provide about 1,000 jobs, and supply around 100,000 batteries per year. LG Chem currently has a battery cell factory in Holland, Michigan, that provides for the new Chevrolet Bolt electric SUV as well as the Bolt hatchback. 


Reports indicated that Asia and Europe supply most of global battery manufacturing with Tesla accounting for most of US’ production. GM plans to electrify all of its new passenger vehicles by 2035 amid a global battery shortage, creating the need for a second plant.


Notably, EVs only made up 2pc of the US market in 2020 of 14.6mn in new sales. US carmakers plan to offer 22 new electric models this year. US battery powered car sales are forecast to reach more than 1mn per annum beginning in 2023 leading to more than 4mn by 2030.


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