General Motors (GM) is reportedly eyeing a second battery factory in the U.S. with South Korea’s LG Chem, after setting a bold target to sell only electric vehicles by 2035. GM stock rose.
GM and LG Chem are close to a decision to locate the battery-cell plant in Tennessee, sources told The Wall Street Journal.
The joint-venture partners already are building a $2.3 billion plant in Ohio, which is supposed to open next year. The new plant could be of similar size and eventually supply batteries for hundreds of thousands of electric vehicles (EVs) every year.
Battery supplies are a burning issue as legacy automakers, tech giants and tech startups all pile into EVs. In December, Tesla (GM) began construction of what’s described as the world’s largest battery factory near Berlin.
GM Stock In Buy Range
Shares of General Motors rose 1.2% to 53.31 in Thursday’s stock market. Last week, GM stock found support at the 10-week line, creating a buy point around 49.40, according to MarketSmith chart analysis. The buy range goes to 54.34. The auto giant outperformed in the past year as it accelerates its shift to EVs.
In January, GM said it aspires to offer only EVs by 2035. That came after President Joe Biden signed a series of executive orders on climate change and green energy.
GM is investing $27 billion in a bold bet on electric cars and autonomous vehicles, with 30 new EVs due by 2025. One of the first in the lineup is an electric Hummer truck, due later this year. GM has also accelerated the arrival of the electric Cadillac SUV to Q1 2022 from late 2022.
Meanwhile, Ford announced plans last month to more than double spending on electric and autonomous driving to $29 billion through 2025.
Besides GM, Ford and Volkswagen (VWAGY) are investing heavily on electric cars.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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