U.S. EV Market to Grow 26% Annually, 1.32 Million Units in 2023
Total investment of 2.7 trillion won in Ohio joint venture
Construction to begin mid-next year, supplying battery cells for GM electric vehicles


LG Chem is establishing a joint venture for electric vehicle battery cells with GM (General Motors), the number one automaker in the U.S., to target the U.S. electric vehicle market.

The U.S. electric vehicle market is considered one of the world's top three electric vehicle markets, along with China and Europe.

According to Mirae Asset Daewoo Research Center, the U.S. electric vehicle market is expected to grow at an average annual rate of 26%, rising from 520,000 units this year to 910,000 units in 2021 and 1.32 million units in 2023.

LG Chem announced that it signed a joint venture agreement on the 5th (local time) at the GM Global Tech Center in Michigan, USA, with GM CEO Mary Barra, LG Chem CEO Shin Hak-chul, and others in attendance.

The joint venture will be established with a 50:50 equity split, with each company contributing 1 trillion won. The plan is to invest a total of 2.7 trillion won in stages to secure a production capacity of over 30 GWh. Currently, LG Chem's global electric vehicle battery production capacity is approximately 70 GWh.

The factory site is located in the Lordstown area of Ohio, and construction will begin in the middle of next year. The battery cells mass-produced here are supplied to GM's next-generation electric vehicles.

LG Chem has already been supplying batteries for GM’s electric vehicle flagship models, such as the Chevrolet Spark and Chevrolet Bolt, since being selected as the sole battery supplier for the Chevrolet Volt, the world’s first mass-produced electric vehicle launched by GM in 2009.

GM Chairwoman Mary Barra stated, “The combination of GM’s vehicle manufacturing technology and LG Chem’s battery technology will accelerate the transition to the electric vehicle era,” adding, “We expect that our collaboration with LG Chem will enhance the value we can deliver to our customers.”

LG Chem Vice Chairman Shin Hak-chul stated, “We will strengthen our position as a global market leader by supplying customers with technological solutions, including LG Chem’s battery technology, safety and reliability, and mass production experience.”

Meanwhile, with the establishment of this joint venture, LG Chem will secure a total of seven production bases, including five in-house production plants and two joint venture production plants. LG Chem plans to expand its global electric vehicle battery production capacity to approximately 100 GWh by 2020.