Report: Ultium Cells Slows Construction on Third Plant

YOUNGSTOWN, Ohio – A Korean news outlet reported Monday that construction has slowed at Ultium Cells LLC’s third battery-cell manufacturing plant in Lansing, Mich., because of slackening demand in the electric vehicle market.

The Korea JoongAng Daily reported that Ultium was “slowing” construction at the third plant, refuting an earlier story from Korean news media that construction at the plant had stopped.

“The supply of equipment and materials has been postponed so far,” an LG Energy spokesperson told the news outlet. “The construction has never been halted.”

Ultium spokeswoman Katie Burdette confirmed that construction was ongoing, and the plant “should be substantially complete by October 2024. We will install and scale capacity at Lansing the same way we do at our Warren and Spring Hill plants: based on customer demand.”

Ultium, a joint venture between General Motors and LG Energy Solution, continues to produce battery cells from two other plants in Ohio and Tennessee. Meanwhile, GM has lowered its production targets for EVs this year.

In April, Ultium’s Spring Hill, Tenn., plant shipped its first battery cells that are used in batteries for several of GM’s EV models. Two years ago, Ultium’s Lordstown plant began production of battery cells used in GM’s EV portfolio.

The Korean Herald reported earlier that construction had stopped in Lansing because of reduced EV demand and overall economic conditions such as inflation and higher interest rates.

Ultium broke ground on the $2.6 billion Lansing plant in 2022. In March, the facility had logged more than 2 million construction hours and is scheduled for completion by the end of this year.

Pictured at top: Ultium Cells’ battery-cell manufacturing plant in Lansing, Mich., is under construction. (Ultium Cells)

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