[Exclusive] LG Chem-GM Confirm US Battery Joint Venture Name as 'Ultium Cells'

[Asia Economy Reporter Park So-yeon] LG Chem announced on the 29th that it has finalized the name of the battery cell joint venture with the American automobile company General Motors (GM) as 'Ultium Cells' Limited Liability Company (LLC). Ultium Cells is expected to hold a groundbreaking ceremony for the battery cell factory as early as mid-year.

Previously, LG Chem signed the joint venture agreement at GM Global Tech Center in Michigan, USA, at the end of last year, with GM Chairwoman Mary Barra and LG Chem Vice Chairman Shin Hak-cheol in attendance.

The joint venture will be a 50-50 equity partnership, with each company investing 1 trillion KRW, and plans to invest a total of 2.7 trillion KRW in phases to secure a production capacity of over 30GWh. The factory site is in the Rose Town area of Ohio, with construction starting mid-year, and the mass-produced battery cells will be supplied to GM's next-generation electric vehicles.

The establishment of this joint venture was realized as the interests of GM, which declared its transition to an electric vehicle company, and LG Chem, which needs to respond to the rapidly growing U.S. market while minimizing risks from large-scale investments in the battery sector, aligned.

Furthermore, LG Chem explained that it was selected as GM's joint venture partner because the two companies have maintained a cooperative relationship over the past decade, recognizing the quality and mass production capabilities of LG Chem's electric vehicle batteries.

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, LG Chem has been supplying batteries for the Chevrolet Volt and other models.