Ultium in April announced a second $2.3 billion U.S.-based battery factory in Spring Hill, Tennessee that is due to open in 2023. The company established its first research facility in the U.S. in the early 2000s. LG Energy Solution and General Motors are two highly successful global brands, and we are pleased they have chosen Tennessee for Ultiums second U.S. electric battery cell plant. Through Ultium Cells, LG Energy Solution and GM will merge their advanced technologies and capabilities to help accelerate automotive electrification. Products. In November 2019, GM sold the 6.2 million square-foot planttoelectric truck maker Lordstown Motors. Follow her on Twitter @jlareauan. The company will build the new 2.8-million-square-foot, state-of-the-art plant on land leased from General Motors. Ultiums three battery cell plants will enable GM to manufacture up to one million EVs in North America by mid-decade. Merger Annoucement . Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. The funds will help Ultium to build three battery cell factories in Ohio, Tennessee, and Michigan. Since 2018, TNECD has announced more than 5,900 new job commitments and roughly $10 billion in capital investment related to EV battery manufacturing or the EV battery supply chain. About General Motors The US Energy Department intends to loan Ultium Cells LLC, a joint venture of General Motors Co. and LG Energy Solution, $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan. General Motors has announced its decision to spend around $35 billion to develop EVs and autonomous vehicles through 2025. When I said, 'Its not union pay,' they had no interest in the union. Additionally, with more than 180,000 electric vehicles produced in the state since 2013, Tennessee ranks No. *Ultium Cells : To rapidly expand GMs electric vehicle portfolio, it started battery cell production in Ohio earlier this year, a second plant will launch in 2023 in Tennessee, and construction of a third plant is underway in Michigan. O'Hara said he has heard it might start as high as $20 an hour. 2020 Benzinga.com. When you go down to South Carolina and talk to autoworkers there like I did, they think their jobs are great and high-paying jobs. Recent news which mentions Ultium Cells. General Motors: Pushing the Limits of Transportation & Technology The plants supply battery packs that will be used by Ultium-powered . The cells manufactured by Ultium Cells LLC are large format, pouch-type cells that use a state-of-the-art nickel-cobalt-manganese-aluminum (NCMA) chemistry to deliver more range at less cost. It will supply artificial graphite anode materials produced at the Pohang plant for six years from 2023 to 2028 to Ultium Cells LLC, a U.S. battery joint venture between General Motors and LG Energy Solution. "Workers know they shouldnt punch out of a democracy when you punch into a plant. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. The value of Ultium Cells LLC, which is a joint venture between General Motors and South Korean chemical firm LG Chem, is estimated at $20 billion, according to Morgan Stanley. The production will start in 2022. Based on our technology and competitiveness in raw materials, we will expand our global customers and develop our cathode and anode material business in a balanced manner to become a global top-tier battery material company. While some investors view Ultium as copying Tesla Inc (NASDAQ: TSLA), there seems to be only one mission for General Motors to grow. The $2.5 billion loan will surely boost the production process at Ultium Cells plants and will bolster GMs electric vehicle production. It will allow us to build solid and stable U.S-based supply chains that enable everything from research, product development and production to the procurement of raw components. The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 11 Buys, three Holds, and one Sell. Butthe joint venture isa 50-50 ownership between GM and LG Chem and because of that, GM cant legally dictate how to run the business, including what wages to setor permitting a card check process. Contact Jamie L. LaReau: [email protected]. The transition to EVs is supposed to be a step forward and to me this process now is a step backward, Estrada said. December 12, 2022. Construction has started with ground prep activities for the future site of the Ultium battery cell manufacturing facility in Lordstown.. During the pandemic, product development work on GM's future EV and AV portfolios continues to progress at a rapid pace. Changes in these assumptions may have a material impact on the backtested returns presented. That includes the GMC Hummer EV made at Factory Zero in Detroit and Hamtramck and the newly launched Cadillac Lyriq EV made inSpring Hill, Tennessee. The high-voltage battery is composed of pouch cells that can be stacked horizontally or vertically, depending on the form factor . Ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute to the expansion of Zero-Emission propulsion on a global scale. Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, has announced that it will mass-produce Ultium battery cells to advance the push for a zero-emissions, all-electric future. The union leadership knows organizing these two plantsis "a critical event for the UAW and they know the importance of it," said Marick Masters, professor of business at Wayne State University. According toTipRanks Smart Score, General Motors has a score of nine, indicating that the stock is likely to outperform the market. [email protected], Ultium Cells LLC Communications Steel construction is expected to continue through the . In addition, more than 16,000 electric vehicles are produced in the state each year, which ranks Tennessee No. The facility will be located in Lansing, Michigan. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Please don't submit any personal information. While being an integral part of Team Maury, an announcement of this scope will provide benefits to the entire region, and we thank Ultium Cells for their investment and confidence in our community. Maury County Mayor Sheila Butt, TVA and Columbia Power & Water Systems congratulate Ultium Cells, LG Energy Solution and General Motors on the planned expansion of Ultiums Spring Hill battery cell plant. Through Ultium Cells, LG Energy Solution and GM will merge their advanced technologies and capabilities to help accelerate automotive electrification. Ultium Cells is funded by DOE Loan Programs Office. Anode materials are being manufactured using automated robots at POSCO Chemicals artificial graphite anode material plant. "It would indicate with a neutral employer, unions can win in the South.". "Now, with those few bad apples at the International, they dont have to lie, they can just point at the headlines., Also, the union has a point of view that it's entitled and a job isn't a good job unless it's a union job, said Erik Gordon, a business professor at the University of Michigan. That means if the Ultium Cellsworkforce opts for a union, the UAW will still have to negotiate a new contract and the company will citecompetitors standard pay as the measurement for wages,not the general assembly line pay at GM, Masters said. The companies made the announcement on Tuesday and said that the new, 50-50 joint venture would be called "Ultium Cells LLC." Earlier this year, GM unveiled its new Ultium battery technology . Notably, around 5,000 people will be employed by the three plants combined. Certain assumptions have been made for modeling purposes and are unlikely to be realized. From a geographic standpoint, China-based companies top the list with 44%, followed by the U.S. (22%), South Korea (12), and Japan (6.7%), among others. Ultium Cells is committed to using the most technologically advanced methods in the industry to produce the very best of those . The UAW savedDetroit-Hamtramck Assembly from closure during the 2019 contract talks. Based on our 30 years of R&D experience, we deliver the most advanced batteries that have been infused with cutting-edge technologies to EVs, Energy Storage Systems (ESS) and Mobility & IT applications across the world. At the time of Lordstown's closure, the average worker there madeabout $29.71 an hour, O'Hara said. LORDSTOWN, Ohio-- Ultium Cells LLC is the name of the General Motors and LG Chem joint venture for cell manufacturing. This partnership not only continues our legacy as a leader in manufacturing and job growth, but once again positions Tennessee at the epicenter of innovation. The venture has executed an agreement with Canadian company Li-Cycle to recycle critical materials from the scrap produced . When it's complete, the new Ultium Cells manufacturing plant will span 2.8 million square feet and generate 1,300 new jobs in the region. Compare pay for popular roles and read about the team's work-life balance. ", Dittes saidthe working class doesnot need another "nonunion retail wage type sector popping up to replace livable wages.". But because the plants are part of GM's joint -venture with LG Chem, called Ultium CellsLLC, those new hires will not fall underthe UAW's present contract with GM, forcing the union to organize those workers. Its shocking and sad. The governments Advanced Technology Vehicles Manufacturing (ATVM) loan program will issue the loan, with a conditional commitment to build the said factories. The funds will help Ultium to build three battery cell factories in Ohio, Tennessee, and Michigan. GM announced that factory site in April 2021, saying the$2.3 billion factory will be a 2.8-million-square-foot facility expected to create 1,300 new manufacturing jobs. Thats not competitive. Ashlee Shin But GM indicates it has a long history of supporting unions and the UAW in itsplants and operations. I thank Ultium Cells for investing $275 million in Spring Hill and look forward to new opportunities for Tennesseans across Maury County. , General Motors(NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. Edit Funding Rounds Section. GMs proprietary Ultium battery technology is at the heart of the companys strategy to compete for nearly every EV customer in the marketplace, whether they are looking for affordable transportation, luxury vehicles, work trucks, commercial trucks or high-performance machines. "As part of developing a competitive business case, Ultium Cells LLC has submitted a tax abatement application with St. Joseph County,"where New Carlisle is located,Waid said in a statement. Steel construction at Ultium Cells LLC will continue into fall 2020. By actively expanding its global mass production capacity, it plans to increase its anode material production capacity from the current 82,000 tons a year to 170,000 tons in 2025 and 320,000 tons in 2030. To put it mildly, initial . To grow and strengthen Tennessee, the department seeks to attract new corporate investment to the state and works with Tennessee companies to facilitate expansion and economic growth. QUOTESThe decision to build this plant in Tennessee is a testament to our states position as a leader in the automotive industry. Jennifer McEachern The estimated combined cost of the three factories is around $7 billion, the JV said. What is this? The battery cells it makes will go into GM's new EVs using GM's Ultium propulsion system. 10 Biggest Price Target Changes For Tuesday, View More Analyst Ratings for GM View the Latest Analyst Ratings, 7 Reasons Why This Teladoc Health Analyst Is Turning Bullish, BofA Cuts Intel Target On Uncertain Roadmap, Why This Peloton Analyst Says An Apple Fitness Subscription Poses Little Threat. Traditionally most of this material has originated in China, however, POSCO Chemical has localized production at its Pohang plant with an annual capacity of 8,000 tons in 2021. Ultium Cellsis a joint venture between General Motors and LG Energy Solution that will mass-produce Ultium battery cells to advance the push for a zero-emissions, all-electric future. Tennessee is also quickly becoming a leader in the domestic manufacturing of critical materials used to make lithium-ion batteries, such as lithium, cobalt, nickel and graphite. 1 in the Southeast for electric vehicle manufacturing. By expanding battery cell output at Ultium Spring Hill, this investment will help GM offer customers the broadest EV portfolio of any automaker and further solidifies our . The analystadded that General Motors story is bigger than Ultium and much bigger than the near-term stock price.. People maysay, 'If thats the most theyre going to pay is what Tesla pays, then why do we need a union?' The Tennessee facility will supply battery cells to General Motors Spring Hill assembly plant for production of the Cadillac LYRIQ, the first electric vehicle produced at the plant, and other GM Ultium Platform-based electric vehicles. POSCO Chemical has been the only company in Korea to produce natural graphite anode materials since 2011. Submit Answer. Follow her on Twitter @jlareauan. Weve made a lot of changesunder President Rory Gamble and the board," Estrada said. Ultium Cells has raised a total of $5B in funding over 2 rounds. He added, however, that there are several risks around the company generating credit for its battery capacity. Once 50%, plus one person, checks "yes,"the company will recognize the UAW as the bargaining entity. GM closed Lordstown Assembly, which had been building the Chevrolet Cruze subcompact car, in March 2019. Reuters, which was first to report the story, said astart-production date was unknown. About General MotorsGeneral Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. 0:15. Ultium Cells LLC. No cash balance or cash flow is included in the calculation. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. 27 Jan 2022. Also, a company can still be competitive with union representation, said Shaiken ofUniversity of California, Berkeley. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com. The new expansion will help fuel GM 's aggressive EV strategy as it . Widespread hiring at the plants has not yet begun. GM said that via the Ultium Cells LLC joint venture with LG Energy, the car marker is "exploring the feasibility of constructing a second state-of-the-art battery cell plant." A decision . But then there is the South, which takes us tothe other Ultium Cellsplant that GMwill buildin Spring Hill. GM has said it will collectivelyhire about 2,400 workers at the two plants. Ultium Cells LLC will build the new 2.8-million-square-foot, state-of-the-art plant on land leased from General Motors. Not so, says the UAW. Tennessee has made significant strides in electric vehicle manufacturing with investments from companies like General Motors and LG Energy Solution. Meanwhile, the stock has lost 43.6% so far this year. authenticate users, apply security measures, and prevent spam and abuse, and, display personalised ads and content based on interest profiles, measure the effectiveness of personalised ads and content, and, develop and improve our products and services. Our Ultium cells are so robust, they can electrically and physically support EVs of every shape and size. All rights reserved. - Tom Gallagher, vice president of operations, Ultium Cells LLC "Ultium Cells will play a critical role in making GM's commitment to an all-electric future a reality. Ultium Cells will provide battery cell capacity to support GM's North American electric vehicle assembly capacity of more than 1 million units by mid-decade, while supporting GM plans to supply other automotive companies and other industries including rail, aerospace, heavy trucking and marine customers. If you do not want us and our partners to use cookies and personal data for these additional purposes, click 'Reject all'. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. ", But Estrada pulledno punches, saying, The wages have to be $15 to $17 dollars to be competitive? Home to the worlds first EV battery lineup, we provide the best battery solutions for EVs worldwide. On Wednesday, workers hoisted the final steel beam into place on a 2.8 million-square-foot building in Spring Hill for Ultium Cells LLC, a joint venture between General Motors Co. (NYSE: GM) and . 0:30. If they are hearing anti-union rhetoric daily inside and outside the plant from outside groups, they will be unfairly swayed, Estrada said. DOE closes $2.5B loan for Ultium Cells battery production. 11, 2021, 08:00 AM. The General Motors Thesis: Ultium is a major part of General Motors entire EV capabilities, Jonas said. The announcement today by Ultium Cells that it will significantly increase both its investment and the number of high-quality jobs created, prior to even beginning operations at their new facility, serves as testament to the unique advantages Maury County offers high-tech manufacturers. You can build cells with less workers, so there is no reason they couldnt pay more.. I appreciate General Motors and LG Energy Solution for making this substantial investment in Spring Hill and for creating 1,300 new jobs for Tennesseans. Gov. Tennessee claims nearly 40 percent of the Southeasts electric vehicle manufacturing jobs and investment, with more than $4.2 billion invested by companies in Tennessees electric vehicle industry. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. LG Chem's stock was trading at $280.00 at the beginning of the year. This investment is significant not only to Maury County and Tennessee but to North America as Ultium Cells will be at the forefront of EV technology innovation and production. The UAW is prepared to battleGeneral Motors at two new battery cell factories if the automaker won't allow a simplified process to organize workers there. The Ultium Cellsplant in Spring Hill will open in two years and will employ 1,300 people, mostly hourly, tomake batteries for theLyriq. GM can still"take the high road and say, 'Well have card check, management neutrality andwe will make these high-wage jobs,' " Estrada said. POSCO Chemical has signed a contract with Ultium Cells LLC of the United States for a large-scale supply of artificial graphite anode materials. The General Motors Analyst: Adam Jonas maintained an Overweight rating for General Motors, while raising the price target from $43 to $46. The loan is a part of the Biden . The new battery-cell manufacturing joint-venture operation is called Ultium Cells LLC. In January, GM saidit will spend $2.6 billion tobuild a thirdUltium Cells battery factory in the Lansing area, which it has started construction on and is expected to open in late 2024. We, along with our partners, Columbia Power and Water Systems, Tennessee Department of Economic and Community Development, Maury Alliance, Middle Tennessee Industrial Development Authority, and Oak Ridge National Laboratory celebrate this announcement and look forward to the companys continued success in the Valley. John Bradley, TVA senior vice president of Economic Development. "We are not going to speculate on that future decision. Do you need experience to work at Ultium Cells LLC? The analystadded that General Motors story is bigger than Ultium and much bigger than the near-term stock price.. Thisplant is expected to be similar to three others Ultium Cells is building and have a similar cost of about $2 billion, Reuters reported, citinga source briefed on the matter. We have a very democratic process of bargaining. The UAW wants GM to immediatelygrant what is known asa card check process,which allows new hires to check a box on a card indicating whetherthey want union representation. Construction will begin immediately, and the plant is scheduled to be open in late 2023. Ultium Cells will provide battery cell capacity to support GMs North American electric vehicle assembly capacity of more than one million units by mid-decade, while supporting GMs plans to supply other automotive companies and industries including rail, aerospace, heavy trucking and marine customers. These are certificates that represent shares of international stock that can be bought from a domestic account no international brokerage account required. For more information about LG Energy Solution, please visit https://www.lgensol.com. On Tuesday,ex-UAW President Dennis Williams was sentenced to 21 months in prison for embezzlement. And a federal monitor will work to ensure that is the case. The U.S. government hopes to reduce this dependency by pushing its automakers to build their own battery cell manufacturing plants in the nation. "A lot of the younger people … when they work at other companies, the first thing theyre shown in training is an anti-union video. Ultium Cells LLC | 6,254 followers on LinkedIn. Find out what works well at Ultium Cells LLC from the people who know best. Ultium batteries are unique in the industry because the large-format, pouch-style cells can be stacked vertically or horizontally inside the battery pack. "Ultium Cells, with the support of GM officials, are in discussions with the appropriate local officials on the abatement application.". "My experience has been when management says theyll stay out of it, there is plenty of room for others to get in it," Estrada said. The UAW has a big ally: President Joe Biden, who has supported a transition to EVs with proposed federal incentives and acall for high-paying union jobs in the sector. (615) 336-2689 About LG Energy SolutionLG Energy Solution is a global leading battery maker providing the best solutions within the energy sector for a better world. So I suspect GM will make this a smooth process and be prepared to deal in a constructive way if both plants unionize.. Lordstown Motors CEO Steve Burns has indicated the UAW can organizethe workforce there. Bill Lee and Department of Economic and Community Development Commissioner Bob Rolfe today announced Ultium Cells LLC, a joint venture of LG Energy Solution and General Motors, will invest more than $2.3 billion to build its second battery cell manufacturing plant in the United States. Labor experts expectGM and LG Chem management willnot mount aggressive drives to defeat the UAW given GM's improvedrelationship with the union today after 2019's 40-day strike against the automaker. More: GM to reinstate a dividend and start stock buybacks, signaling confidence, More: 1 person dead after fight at GM's Orion Assembly plant: How he died. The average General Motors price target of $53 implies 53.5% upside potential to current levels. Grewe spoke with media in a conference call shortly after the company announced it had started to prepare the site near its former assembly plant in Lordstown, Ohio, that will build the first Ultium batteries with partner LG Chem. Ultium Cells LLC, a joint venture between General Motors and LG Chem, has been steadily building up its battery cell manufacturing capacity in the U.S. since the venture was first announced in December 2019. . Find company research, competitor information, contact details & financial data for Ultium Cells LLC of Warren, OH. The loan will be issued in a couple of months and will be the first loan disbursed by the ATVM since 2010. The plant . Importantly, I truly believe this coming together transcends a partnership as it marks a defining moment that will reduce emissions and help to accelerate the adoption of EVs. Jonghyun Kim, LG Energy Solution president and CEO, A few months ago, I was privileged to work with our partners at General Motors and announce a historic $2 billion investment in Maury County which further solidified GMs commitment to the future of EV technology and Maury Countys role as an economic driver in Tennessee. Ultium Cells LLC will build the new 2.8-million-square-foot, state-of-the-art plant on land leased from General Motors. LORDSTOWN, Ohio - The president and CEO of Ultium Cells LLC said Wednesday that a key component in making its $2.3 billion electric-vehicle battery plant a success will be its workforce. In the end, itll be an obstacle to the transition to electric vehicles., More: All-electric pickup catches fire in Michigan and experts warn it could happen again, More: GM invests in Lordstown Motors merger that will make it publicly traded, More: GM fast-tracks electric vehicle plans, starts hiring near former Lordstown plant. Our battery options scale from 50 kilowatt hours to over 200 kWh . Estrada said Gamble and UAW Vice President and Director of the General Motors Department Terry Dittes have been talking toBarra about neutrality and card check processes for weeks. "The future Ultium Cells workforce working at this location will decide if they want union representation," GM spokesman Dan Flores said. The plant is one of four currently being developed by Ultium, with the others located in Ohio, Tennessee and Michigan. The impactful investment and job creation will yield dividends for the region. Ultium Cells is hosting another career fair to find applicants for the 1,100 jobs expected at its new electric vehicle battery plant in Lordstown. Find out more about how we use your personal data in our privacy policy and cookie policy. Ultium Platform driving GM's commitment to an all-electric future; LANSING, Mich. - Ultium Cells, a joint venture of LG Energy Solution and General Motors, today announced a $2.6 billion investment to build its third battery cell manufacturing plant in the United States. Michigan with General Motors to mass produce 50 GWh of EV batteries under the Ultium . When a company says theyll stay neutral, they know all of that (negative press) will come up. The loan is a shot in the arm for GM, which will help bolster its electric vehicle production. Find us on the web:tnecd.com. LG Energy Solutions Advanced Automotive Battery leads the market with its outstanding technologies and products. We are grateful to Ultium Cells for their continued investment in Middle Tennessee and their commitment to advancing clean energy technologies for the 21st century. The consensus earnings is pegged at $1.27 per share. GM's claim is asticking point with the union. "But the fact that Ultium isa joint venture, its not going to be like a typical GM plant where the UAW is pretty much guaranteed to be in there. The all-new Cadillac LYRIQ will be the first electric vehicle produced at GMs Spring Hill assembly plant. Investment adds to the initial $2.3 billion investment announced roughly 18 months ago. At issue in the new plants, which are under constructionand are joint venturesthat arent automatically UAW-represented, is a process that would allow workers to check a box on cards to allow them to organize, versus a drawn-out, traditional vote process. Production facilities in operation at POSCO Chemicals artificial graphite anode material plant. (313) 418-2374
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