South Korea’s LG Chem said on Thursday it would invest $916 million in its U.S. subsidiary by 2023 to set up an electric vehicle battery joint venture with General Motors (NYSE:GM)
One source familiar with the matter told the media that the facility, expected to be located in the Lordstown area of Ohio, would see an investment of more than $2 billion, with GM and LG Chem expected to invest more than $1 billion each.
Those close to the matter say the venture is likely to be signed on Thursday.
The sources said workers at the plant were expected to be represented by the United Auto Workers union and earn in the range of $15 to $17 an hour.
A GM-LG plant could be the first unionized battery factory in the United States. Tesla’s factory and LG Chem’s battery factory in Michigan do not have unions.
Ohio has become a lightning rod in the 2020 presidential election after GM announced in November 2018 plans to close a car manufacturing plant in Lordstown, drawing condemnation from U.S. President Donald Trump.
The plant’s closure was one issue during a lengthy strike by GM workers.
GM said in September it planned to bring battery cell production to the Lordstown area, which it said would create about 1,000 manufacturing jobs.
Reuters first reported in July that LG Chem was considering its second U.S. factory with production slated to start in 2022.
LG’s second plant would make modular batteries for multiple GM vehicles, including a future Cadillac EV
GM shares poked 14 cents to $35.56
