WASHINGTON, Jan 20 (Reuters) – Basic Motors Co (GM.N) and LG Vitality Answer (373220.KS) don't plan to maneuver ahead with a fourth U.S. battery cell manufacturing plant, two sources informed Reuters on Friday.
The businesses' three way partnership Ultium Cells LLC mentioned in August it was contemplating a website in New Carlisle, Indiana, for a fourth U.S. battery plant, anticipated to price round $2.5 billion.
“We’ve been very clear that our plan consists of investing in a fourth U.S. cell plant, however we’re not going to touch upon hypothesis,” GM mentioned in an announcement on Friday.
LG Vitality mentioned late on Friday that discussions on a fourth plant stay ongoing “however no choice has been made.” The plan was reported earlier by the Wall Road Journal.
GM might nonetheless proceed with plans to construct a brand new plant in Indiana with a brand new associate, the sources mentioned.
The Detroit automaker and the South Korean firm are constructing a $2.6 billion plant in Michigan, set to open in 2024. In December, Ultium mentioned it might increase its funding in a $2.3 billion Tennessee plant that's set to open later this 12 months by one other $275 million.
GM mentioned Friday it's quickly investing to ramp up cell manufacturing with LG Vitality, including that the vegetation in Tennessee and Michigan are on observe to open in 2023 and 2024, respectively.
“This cell capability retains us on observe to supply 400,000 EVs (electrical autos) in North America by mid-2024 and we anticipate to have cell capability to supply greater than 1 million EVs yearly in North America in 2025,” GM mentioned.
Final month, the U.S. Vitality Division finalized a $2.5 billion low-cost mortgage to Ultium to assist pay for the three factories.
President Joe Biden has set a aim for 50% of U.S. auto manufacturing by 2030 to be electrical or plug-in electrical hybrid autos. GM plans to cease promoting gasoline-powered autos by 2035 however remains to be investing in inside combustion manufacturing.
Reporting by David Shepardson; Enhancing by Kirsten Donovan and William Mallard
: .