[bongos2u]

"DETROIT – General Motors and LG Energy Solution have indefinitely shelved plans to build a fourth battery cell plant in the U.S., as talks between the two sides recently ended without an agreement, a person familiar with the plans confirmed to CNBC".

More at the link...

GM, LG end plans for fourth U.S. battery cell plant; automaker seeks new partner (cnbc.com)

 

[CJH]

Just a reminder that GM is dependent on outside manufacturers for a lot of their scale in the EV market, as all of the Ultium battery plants are JV's.

 

[BlackGTP]

Interesting development - I'd think a fourth plant would be boilerplate as far as agreements between the two.

Though it may not be a bad idea to have another supplier as a partner in case a relationship sours it doesn't bring the entire company to its knees.

 

[tripowergto Jan2003]

LG doesn't want a union workforce which their Lordstown battery plant with GM now has.

 

[Neanderthal]

LG doesn't want a union workforce which their Lordstown battery plant with GM now has.

Indicating that LG management can observe and make rational conclusions. Was this union pressured? It wouldn't surprise me.

 

[EJD1984]

I know GM is deep into it's next-gen battery development, and might be in validation testing now. I wonder if this could be a factor - Where LG wants more input on the design (and/or license to use elsewhere), but GM wants it 100% inhouse.

 

[GMFAN85]

GM has been investing in a solid-state battery company (PSOCO Chemical) and if the tech is successful, that partnership could fully replace LG by the end of the decade.

Combine that with the Bolt battery debacle, I can imagine the relationship between GM and LG has cooled over the past couple years.

 

[BahamaTodd]

GM has been investing in a solid-state battery company (PSOCO Chemical) and if the tech is successful, that partnership could fully replace LG by the end of the decade.

Combine that with the Bolt battery debacle, I can imagine the relationship between GM and LG has cooled over the past couple years.

POSCO chemical provides cathode and anode material for conventional lithium ion batteries. I'm sure solid state is on GM's radar but that's not something in the near future for them.

GM is working on Ultium 2.0 with SES which is a lithium metal battery company. That battery has a pure lithium anode (instead of the usual carbon) and will probably still use a similar cathode material.

Source: SES

 

[EJD1984]

I can see eventually the partnership that GM has with LG will eventually be dissolved, and they will buy out LG's steak in the Ultium joint venture.

 

[nota2]

I can see eventually the partnership that GM has with LG will eventually be dissolved, and they will buy out LG's steak in the Ultium joint venture.

I can say that LG whitegoods don’t have the best reputation in my country. I mean, if this brand can’t make a decent fridge or washer, what hope is there?

 

[CJH]

I can say that LG whitegoods don’t have the best reputation in my country. I mean, if this brand can’t make a decent fridge or washer, what hope is there?

I mean, they make great TV's, so what's the worry?

 

[61BelAir]

Interesting development - I'd think a fourth plant would be boilerplate as far as agreements between the two.

Though it may not be a bad idea to have another supplier as a partner in case a relationship sours it doesn't bring the entire company to its knees.

Agreed 100%...they need to have a backup just in case. Even if there are no issues, having all your eggs in one basket isn't a good idea.

 

[BlackGTP]

GM has been investing in a solid-state battery company (PSOCO Chemical) and if the tech is successful, that partnership could fully replace LG by the end of the decade.

Combine that with the Bolt battery debacle, I can imagine the relationship between GM and LG has cooled over the past couple years.

Even with Bahama Todd's response in mind, eventually some kind of tech will supplant today's chemistry. Pretend this PSOCO tech is ready to go, would it necessarily end the GM/LG partnership, or would they just license it to LG/GM for production it in their current factories? I'd think whoever develops the tech would have to license it - there'd be a huge ramp up time needed to build entirely new factories, etc. to build for the world market. And, every time a new company has better tech I don't see all manufacturers writing off their current plants...

 

[nota2]

And, every time a new company has better tech I don't see all manufacturers writing off their current plants...

Exactly, that’s going to be a near-future reality, and well put sir. Going to be some big losers along the way, in this new fast moving/developing automotive environment!

 

[CaptainDan]

Even with Bahama Todd's response in mind, eventually some kind of tech will supplant today's chemistry. Pretend this PSOCO tech is ready to go, would it necessarily end the GM/LG partnership, or would they just license it to LG/GM for production it in their current factories? I'd think whoever develops the tech would have to license it - there'd be a huge ramp up time needed to build entirely new factories, etc. to build for the world market. And, every time a new company has better tech I don't see all manufacturers writing off their current plants...

That depends on just how different any new tech is. If it's just a "near similar" evolution of the first, no problem, use the same plant.

But a steel foundry doesn't do you a lot of good if you decide to switch to carbon fiber. (For example)

 

[tnmats]

I can say that LG whitegoods don’t have the best reputation in my country. I mean, if this brand can’t make a decent fridge or washer, what hope is there?

They're different companies, have been for a while. LG Chem spun off battery operations in 2020.

LG Chem completes battery spin-off - electrive.com

LG Chem has now officially completed the spin-off of its battery division. The new company is apparently also going to significantly increase the production of battery cells for Tesla, which will include Giga Berlin in Germany. The new spin-off company LG Energy Solution employs around 22,000...

www.electrive.com

I agree on LG's appliance quality, it's abysmal but that does mean the same for all LG's offerings.

 

[EJD1984]

I think this is the key reason for the LG breakdown. Apparently General Motors is looking at moving to cylindrical cells instead of pouch cells, and I don't think LG has much experience making cylindrical cells, or the track record.

Plus with new generation battery technologies and development, GM may be getting more energy density out of the cylindrical design.

General Motors considering using cylinder batteries over pouch for EVs

General Motors was considering using cylinder batteries over pouch batteries in its electric vehicles (EV), TheElec has learned.The US automobile giant had previously used pouch batteries from EV battery supplier LG Energy Solution for its models.Sources said this choice by General Motors’ has cause

www.thelec.net