General Motors is thinking about building a second battery factory in the United States, The Wall Street Journal reports, to increase its production of electric vehicles in light of a legitimate concern for becoming a total carbon neutral organization by the year 2040.
The factory would be built in collaboration with LG Chem, the South Korean battery creator that is now working with GM on a battery factory in northern Ohio. As per the Journal, the second facility is probably going to be situated in Tennessee, however a final location presently can’t seem to be selected. A representative for GM affirmed that a second factory is being talked about with LG Chem, and a decision is expected at some point in the first half of 2021.
GM reported the development of its first battery factory in December 2019. The automaker set up a joint venture with LG Chem, with the two organizations resolving to burn through $2.3 billion on a new facility situated in Lordstown, Ohio.
GM, the biggest automaker in North America dependent on sales, is progressively marking its future on electric vehicles. The organization has promised to spend $27 billion on the development and production of 30 new electric vehicles by 2025, more than 66% of which will be accessible in North America. GM even upgraded its logo to look more like an electrical plug to emphasize its pivot to battery-powered vehicles.
LG Chem is a significant provider of lithium-ion batteries to automakers like Audi, Mercedes-Benz, and their particular parent organizations Volkswagen Group and Daimler. A considerable lot of these automotive giants have plans to either construct their own battery factories plants later on or cooperate with providers to fabricate batteries together, similar to Tesla does with Panasonic. Tesla has likewise declared designs to get its future battery production in-house, and it recently reported a deal with a significant maker of nickel. Yet, until those factories are constructed, they’re helpless before providers like LG Chem.
The auto industry as a whole is gradually moving to electric vehicles, and if the US wants to contend with the rest of the world, it needs to increase its supply of privately produced EV batteries notwithstanding other critical components in the supply chain. SK Innovation, another South Korean organization that supplies batteries to Volkswagen and Ford, started development on its second US-based factory in July in Georgia with production focused on 2023.
President Joe Biden recently signed a series of executive orders pointed toward fighting environmental change, including the electrification of the federal government’s fleet of vehicles. The new organization has given a chance GM to completely accept the charge of its vehicle setup just as disregard its previous help of previous President Donald Trump’s push to permit traveler vehicles to contaminate more.