FILE PHOTO: The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. REUTERS/Rebecca Cook
SEOUL/WASHINGTON (Reuters) – General Motors (GM.N) and South Korea’s LG Chem (051910.KS) are set to announce on Thursday a 50:50 joint venture in Ohio to make electric vehicle batteries, sources familiar with the matter told Reuters.
The facility in Lordstown will see investment of more than $2 billion, with GM and LG Chem expected to invest more than $1 billion each, one of the sources said. The venture is likely to be signed on Thursday, the sources said.
A GM spokeswoman declined to comment on a venture with LG and said, “talks occur on a regular basis in the auto industry between a variety of partners on different topics, but as a matter of policy we don’t discuss who, where or when those discussions might occur.”
An LG Chem spokesman declined to comment, saying the company does not comment on matters related to customers.
The sources declined to be named because the investment had not been made public.
GM said in September it planned to bring battery cell production to the Lordstown area, which it said would create approximately 1,000 manufacturing jobs. Reuters reported in October it would be a joint venture.
Reuters first reported in July that LG Chem was considering its second U.S. factory with production slated to start in 2022.
Reporting by Hyunjoo Jin in Seoul and David Shepardson in Washington; Additional reporting by Heekyong Yang in Seoul; Editing by Muralikumar Anantharaman