Car Industry

GM and LG to build second US battery plant with $2.3B investment

The companies' joint venture, Ultium Cells, selected Spring Hill, Tennessee, for the facility.

GM CEO Mary Barra delivered the announcement this Friday.
Wade Payne/General Motors

General Motors and LG announced Friday they will further expand US-based battery production with a second site in Spring Hill, Tennessee. The two companies, which operate a joint venture called Ultium Cells, named Spring Hill the location of the next battery assembly plant as the automaker works to grow its US supply chain for future electric cars.

Ultium's first site remains under construction in Lordstown, Ohio. The Ohio- and Tennessee-based sites each received a $2.3 billion investment to make them happen. The Spring Hill location, in particular, isn't much of a surprise -- GM operates a sprawling vehicle production facility nearby. That plant currently builds the Cadillac XT5, GMC Acadia and more. In the near future, the production site will also build the Cadillac Lyriq EV.

The new plant, like its Ohio counterpart, will assemble GM and LG's Ultium battery packs and the associated technologies and that go into them. The Ultium strategy is meant to better target Tesla as GM seeks to emerge from the EV transition as a leader through the next decade. The batteries will underpin everything from the GMC Hummer EV SUV and pickup truck, the Cadillac Celestiq flagship sedan, commercial vehicles and future affordable EVs GM plans to announce in due time.

Friday's $2.3 billion announcement comes as part of a $27 billion commitment to invest in electric and autonomous vehicles. Construction of the new plant will begin immediately, with plans to open the facility in 2023.

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