General Motors and LG Energy Solution have reportedly scratched plans to build a fourth battery cell manufacturing plant in the United States.
In August, the two companies revealed they were considering a site in New Carlisle, Indiana and that some $2.5 billion would be invested into it. Now, two sources who spoke with Reuters state that the plans have been scrapped, although both GM and LG Energy have denied the report.
Read: U.S. Energy Department To Lend GM Battery Cell Manufacturing Arm $2.5 Billion
In a statement issued last Friday, GM said it’s “been very clear that our plan includes investing in a fourth U.S. cell plant, but we’re not going to comment on speculation.” LG Energy added that discussions for a fourth plant remain ongoing but noted that “no decision has been made.”
GM and LG Energy already operate a joint venture battery plant in Ohio and are currently building a $2.6 billion plant in Michigan that’s set to open in 2024. Work is also underway on a $2.3 billion factory in Tennessee.
The Wall Street Journal states that talks between the two companies in recent months have ended without an agreement on a fourth plant being reached. It is claimed that the car manufacturer is holding discussions with one other battery supplier that it could partner with on a new battery cell factory.
It is understood that executives from LG Energy were hesitant to commit to a fourth cell factory with GM given the extraordinary pace of its current U.S. expansion. Not only is it working on three factories with GM but LG Energy is also working on a plant with Stellantis in Windsor, Ontario, and one with Honda in Ohio. Uncertainty around the current macroeconomic outlook is also thought to have contributed to LG Energy’s decision to not move forward.
