Investing.com - General Motors (NYSE: GM) expands investments in the creation of electric vehicles and plans to build a second plant for the production of batteries in the US with a joint venture partner LG Chemicals (KS: 051910), writes the Wall Street Journal.
GM and LG are close to the completion of the decision on placing the plant in Tennessee, the sources of publication reported, noting however, the final choice is not yet made, and the decision will be made in the first half of the year.
Partners are already building a factory for the production of batteries worth $ 2.3 billion in the northeast of Ohio, which is expected to open next year and ultimately will supply batteries in an amount sufficient to feed hundreds of thousands of cars annually. According to sources, in the second plant, similar investments can be invested.
GM uses its own battery technology under the Ultium brand, which should reduce the cost of batteries by almost 40%.
The problem of batteries is also facing the pioneer for the production of electrocars, Tesla (NASDAQ: TSLA). Due to growing concerns about future problems with nickel supplies used in lithium-ion batteries, Tesla entered into an agreement on technical partnership with Nickel Rudnik in New Caledonia.
>> Tesla solved the problem of nickel shortages, becoming a partner of the mine
GM, the largest car manufacturer in the United States in terms of sales, seeks to completely switch to the production of electric vehicles by 2035. The production of electric cars and drone GM intends to spend $ 27 billion to 2025. By this time, the company plans to release 30 new models on electric batteries around the world, two thirds of which will be designed for the North America market.
As the head of the automaker Mary Barra noted, this will allow GM to compete with Tesla. In the meantime, the proportion of electrocars is only 2% of all general Motors produced.
- In preparation used the Wall Street Journal materials
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