Spotlight – Success Story
Ultium Cells LLC
In recent years, General Motors (GM) decided to restructure its business model to focus on its most profitable operations, including furthering its investment in electric vehicles (EVs). Meanwhile, LG Chem, Korea’s largest diversified chemical company, was considering establishing a U.S. battery cell manufacturing plant. Their shared interest in the EV space brought the two companies together to consider a joint venture (JV) to mass-produce lithium-ion batteries for EVs.
Knowing the state’s strengths in automotive, the JV team reached out to Ohio as a potential location for their JV. Within months, a coordinated team, including state, regional and local officials, presented options and data, including a viable site, financial incentives, a cost analysis related to taxes and labor, and the overall cost of doing business in Ohio.
In December 2019, GM and LG Chem announced the creation of their 50/50 JV, Ultium Cells LLC, to mass produce batteries for future EVs. The business is scheduled to open in August 2022 in Lordstown, Ohio, creating 1,000 jobs.
Ultium Cells will be an integral part of GM’s ambitious plans to develop 20 EV models by 2023, and it represents an investment of up to $2.3 billion through the new, equally owned JV. At the completion of the project, this facility will be one of the largest cell manufacturing plants in the world.
As the world transitions from internal combustion engines to EVs, battery technology and production will be the new backbone of the automotive industry. The Ultium Cells investment helps strengthen the automotive industry in the Northeast Ohio Region and support its growing EV-based cluster.