GM and LG start EV battery production in Ohio

GM and LG Energy Solution have started production at their Ohio factory.

The plant employs more than 800 workers, and production will increase to 1,300 this year. Ohio governor Mike DeWine visited Ultium on Wednesday, reports Reuters.

GM's joint venture with LG Energy Solution will create battery factories across the U.S. They've committed $2.6 billion to develop a cell plant in Lansing, Michigan, will invest $2.3 billion in Spring Hill, Tennessee, and is exploring a $2.4 billion site in New Carlisle, Indiana.

The Ohio factory will supply cells for GMC Hummer EV and Cadillac Lyriq.

The U.S. Energy Department will loan Ultium $2.5 billion for the Ohio, Tennessee, and Michigan locations.

This loan originates from the government's Advanced Technology Vehicles Manufacturing (ATVM) loan program and requires GM and LG to offer prevailing wages and benefits. ATVM can lend $17.7 billion.

LG also works with GM. It has announced a deal with Honda to build a $4.4 billion, 40 GWh plant in the U.S. Construction of this factory is planned to begin in early 2023, and lithium-ion battery cell production may begin in late 2025.