General Motors (GM) and South Korea’s LG Chem are set to declare a 50:50 joint venture in Ohio to make electric vehicle (EV) batteries, sources familiar with the matter said.
The facility, anticipated to be situated in the Lordstown area, will see funding of more than $2 billion with GM and LG Chem anticipated to invest over $1 billion every, one of the sources said. The enterprise is likely to be inked on Thursday, the sources said.
An LG Chem spokesperson refused to comment, saying the corporate didn’t comment on issues related to clients.
The sources refused to be named as a result of the investment had not been made public.
Sources previously stated the battery plant would be a joint venture, where the employees are anticipated to be represented by the auto workers union – UAW – and earn in the range of $15 to $17 an hour.
A GM-LG plant would be the first unionized battery manufacturing facility in America. Tesla’s manufacturing facility and LG Chem’s battery factory in Michigan do not have associations.
Ohio has turned into a lightning rod in the 2020 presidential election after GM declared in November 2018 its plan to shut an automobile manufacturing plant in Lordstown, drawing denunciation from U.S. President Donald Trump.
The plant’s closure was one issue throughout a lengthy strike by GM workers.
GM stated in September it planned to convey battery cell production to the Lordstown area, which it said would create about 1,000 manufacturing jobs.
LG Chem was contemplating its second U.S. manufacturing plant with production slated to begin in 2022.
LG’s second plant would make modular batteries for multiple GM autos, along with a future Cadillac EV, the second person mentioned.