General Motors Co. is looking to build a second battery factory in the U.S. with joint-venture partner LG Chem Ltd. , the latest move in the Detroit auto maker’s efforts to expand its investment in electric vehicles.
A GM spokesman confirmed to The Wall Street Journal that the companies are exploring building a second battery-cell plant and said a decision could come in the first half of this year.
GM and LG are close to completing a decision to locate the plant in Tennessee, said people familiar with the matter. A final selection hasn’t yet been made, the people said.
Already, the two companies are building a $2.3 billion battery plant in northeast Ohio that is expected to open next year and eventually supply enough batteries to power hundreds of thousands of vehicles annually. The new plant is likely to be a similar-size investment, some of the people said.
GM, the nation’s largest auto maker by sales, has set ambitious targets for converting its global lineup to electric vehicles, revealing its aim earlier this year to phase out gas-engine models from its showrooms by 2035.