GM and LG reveal second $2.3bn Ultium EV battery plant
GM and LG will build a new electric car battery plant together, the two companies have confirmed today, settling rumors of an expansion of the joint Ultium Cells venture as the automaker tries to maximize production of cheaper EV power packs. The new facility will be in Spring Hill, Tennessee, and see General Motors and LG Energy Solution pump in a further $2.3 billion in investment.
It follows an existing $2.3 billion investment by the pair in a battery production facility in Lordstown, Ohio. Construction there is currently underway, as GM prepares for a rapid uptick in demand across its various brands for batteries.
GM Ultium, announced in 2019, is the automaker's new platform for all-electric vehicles. It'll underpin models from Cadillac, GMC, Buick, Chevrolet, and other nameplates in General Motors' portfolio, with the potential for 450+ miles of range and a variety of drivetrain configurations. However, it'll also be expensive, at least to begin with, and no small part of that is the cost of the battery cells themselves.
It's leading to a split in GM's EV portfolio, of sorts, as Ultium is reserved for the electric vehicles that can command the highest sticker prices. That means models like the six-figure GMC Hummer EV and the Hummer EV SUV, along with the Cadillac Lyriq. In contrast, more affordable – and more mainstream – models like Chevrolet's Bolt EV and new Bolt EV electric crossover will continue using the automaker's existing, less advanced but much cheaper, platform.
Looking ahead, though, GM is counting on Ultium coming down in price and making affordable batteries at-scale more of a possibility. The roadmap calls for pack sizes from 50 to 200 kilowatt hours, made up of large-format, pouch-style cells which can be stacked either vertically or horizontally for maximum flexibility. There'll also be support for either 400-volt packs with 200 kW DC fast charging, or 800-volt packs with 350 kW DC fast charging, depending on model and target audience.
Getting that all to a cost-effective point is vital if planned vehicles like the all-electric Chevrolet Silverado are to be competitive.
The new Spring Hill Ultium plant will be built by Ultium Cells on land leased from GM to the joint venture. Eventually it's expected to span approximately 2.8 million-square-feet, with construction beginning immediately. However it's not going to be open until late 2023, GM warns.
At that point, it'll be supplying batteries to GM's Spring Hill assembly plant nearby. That'll be the location where Cadillac builds the upcoming Lyriq luxury electric crossover, alongside the existing gas-powered XT6 and XT5 SUVs.