South Korean firm LG Chem announced the setting up of a joint venture with the United States based auto giant General Motors. The firm said that it would make an investment of $916 million in the project through its US subsidiary by 2023. The two companies would be working together to develop a an electric vehicle battery making facility in the US.
This news was first published by the news agency Reuters which was confirmed to the media by an LG Chem spokesman. No details were however officially provided about the venture.
According to reports quoting sources that an investment of more than $2 billion is expected to be made in the new factory which is anticipated to be built in the Lordstown area of Ohio, US. On the overall, it is expected that the two companies would equally share the investments for the factory.
There were no comments made by General Mpotors. "Talks occur on a regular basis in the auto industry between a variety of partners on different topics, but as a matter of policy we don't discuss who, where or when those discussions might occur," said a General Motors (GM) spokeswoman.
The United Auto Workers union is most likely to represent the workers at the new plant. Reports also said that the average salary range for workers at the factory will be between $15 and $17 an hour.
If reports are to be believed, this would be the first time in the United States that a completely unionized battery factory would come up with the GM-LG plant. There are no trade unions at Tesla’s factory and LG Chem’s battery factory in Michigan.
It is also being said that this investment by the companies is going to take a crucial place in the state of Ohio in the US presidential elections next year as this state has become crucial for that elections. In November 2018, GM had announced that it would be closing down its manufacturing facility at Lordstown which had been criticized by US President Donald Trump.
And one of the issues in the lengthy strike by GM workers was the closure of the plant,
However GM had announced in September that it would be setting up a battery cell production facility in the Lordstown area and that it would add about 1000 new jobs. The first reports about a second plant in the US was being planned by LG Chem emerged in July and that the company had planned to start production at the facility in 2022.
According to reports quoting sources, modular batteries for multiple GM vehicles that will include a planned electric powered Cadillac will be made at the second factory being to be set up by LG Chem.
The closed Lordstown Assembly plant of GM was sold to a start-up company last month and the new owner plans to manufacture electric pickup trucks there by the end of 2020.
(Source:www.nasdq.com)
This news was first published by the news agency Reuters which was confirmed to the media by an LG Chem spokesman. No details were however officially provided about the venture.
According to reports quoting sources that an investment of more than $2 billion is expected to be made in the new factory which is anticipated to be built in the Lordstown area of Ohio, US. On the overall, it is expected that the two companies would equally share the investments for the factory.
There were no comments made by General Mpotors. "Talks occur on a regular basis in the auto industry between a variety of partners on different topics, but as a matter of policy we don't discuss who, where or when those discussions might occur," said a General Motors (GM) spokeswoman.
The United Auto Workers union is most likely to represent the workers at the new plant. Reports also said that the average salary range for workers at the factory will be between $15 and $17 an hour.
If reports are to be believed, this would be the first time in the United States that a completely unionized battery factory would come up with the GM-LG plant. There are no trade unions at Tesla’s factory and LG Chem’s battery factory in Michigan.
It is also being said that this investment by the companies is going to take a crucial place in the state of Ohio in the US presidential elections next year as this state has become crucial for that elections. In November 2018, GM had announced that it would be closing down its manufacturing facility at Lordstown which had been criticized by US President Donald Trump.
And one of the issues in the lengthy strike by GM workers was the closure of the plant,
However GM had announced in September that it would be setting up a battery cell production facility in the Lordstown area and that it would add about 1000 new jobs. The first reports about a second plant in the US was being planned by LG Chem emerged in July and that the company had planned to start production at the facility in 2022.
According to reports quoting sources, modular batteries for multiple GM vehicles that will include a planned electric powered Cadillac will be made at the second factory being to be set up by LG Chem.
The closed Lordstown Assembly plant of GM was sold to a start-up company last month and the new owner plans to manufacture electric pickup trucks there by the end of 2020.
(Source:www.nasdq.com)
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