SEOUL -- LG Energy Solution and General Motors will invest more than $2.3 billion to build another battery cell manufacturing plant in the U.S., the companies announced Friday at an event in the state of Tennessee, where the factory will be located.
The plant will be built by Ultium Cells, a U.S.-based joint venture of the two companies, with construction to begin immediately. The facility is scheduled to go online in late 2023 and will create 1,300 jobs.
"The addition of our second all-new Ultium battery cell plant in the U.S. with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future," GM CEO Mary Barra said in a release.
Ultium is currently building its first EV battery plant in the state of Ohio with an investment of 2.7 trillion won ($2.4 billion), according to LG. The factory is expected to start operating next year.
LG said last month that its joint venture with GM will be its second foray into manufacturing EV batteries in the U.S., noting that the new factory will produce batteries from 2023 using next-generation technology.
South Korean companies are investing aggressively in the U.S. as President Joe Biden plans to spend big on infrastructure and technology, including semiconductors and batteries as part of his "Build Back Better" campaign.
Samsung Electronics may build a new chip foundry in the U.S., adding to its existing facility in Texas. Samsung is the No. 2 player in the global foundry market -- the manufacture of chips for other companies -- and looks to challenge market leader Taiwan Semiconductor Manufacturing Co.
South Korean media estimate that Samsung's investment may reach $17 billion, but the company has yet to confirm the amount.
Meanwhile, LG rival SK Innovation is investing $2.6 billion to build factories in the state of Georgia to supply electric car batteries to Ford and Volkswagen.
That project had been in doubt until last week, when SK agreed to pay $1.8 billion to LG Energy in a dispute over the misappropriation of trade secrets. With the settlement, SK could avoid the implementation of a February U.S. International Trade Commission ruling that would have banned it from exporting batteries and components to the U.S. for 10 years.
