GM and LG Chem build a mega-factory for 30GWh batteries

[[MC]Ronin[MC]]

The two companies promise battery costs of (possibly) $ 100 / kWh

GM announces the creation of a new joint venture with LG Chem, which aims to build a battery plant with an annual capacity of 30 GWh. The two companies promise a new "industry-leading per kilowatt hour" in GM's future electric vehicles.

The two companies will invest $ 2.3 billion in a new joint venture holding 50% each. The main goal is to build a lithium-ion battery plant in Lordstown, Ohio, where GM recently sold its plant to Lordstown Motors.

The capacity of the plant will be 30 GWh annually with expandable capabilities, making it a "gigawater", a term po[CENSORED]rized by Tesla when it built Gigafactory 1 in Nevada.

When compared to Tesla, the deal is similar to the one between Tesla and Panasonic for cell production at the plant, but there are some major differences.

Tesla owns the entire plant and gives space to Panasonic, which manufactures the cells that Tesla buys and packs.

In contrast, GM and LG Chem are joining the joint venture, but like Tesla and Panasonic, GM will make the packages, LC Chem will lead the cell production.

GM believes that this new plant will lead to the creation of the cheapest in the battery industry. The group believes that they are about to bid below $ 100 / kWh. This is a threshold that is often referred to as the limit below which BEV production becomes cheaper than an equivalent ICE car.

The annual capacity of 30GWh will represent 30% of the expected 100GWh capacity that LG expects to have by the end of 2020. This is enough to make 2 million 50 kWh batteries.

The plant will supply batteries to future GM electric vehicles, which will be built on the new BEV3 platform, including a new electric Cadillac. Some time ago, the concern said it would launch 20 electric vehicles by 2023, but more details on the topic are missing.

Construction of the new plant will begin around mid-2020.

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