SEOUL, Dec. 5 (Korea Bizwire) — LG Chem Ltd., South Korea’s leading chemical company, said Thursday it will invest US$916 million in its U.S. affiliate for a plan to set up an electric vehicle (EV) battery manufacturing joint venture with General Motors in the United States.
Earlier in the day, Reuters reported that the two sides have reached an agreement to establish a 50:50 joint venture in Ohio, citing unnamed sources.
GM and LG Chem are expected to chip in more than $1 billion each to set up the EV battery producing facility, according to Reuters.
LG Chem has been keeping a close relationship with GM, supplying batteries to the U.S. automaker’s Chevrolet Bolt since the EV was launched in 2009.
If the deal is confirmed, the Ohio plant will be LG Chem’s second EV battery-making facility in the U.S. following its Michigan plant built in 2012.
LG Chem was the world’s fourth-largest shipper of EV batteries in the first half of the year, with a capacity of 8.4 gigawatt hours, according to data from SNE Research.