General Motors and LG Energy Solution are resuming battery-cell production at their Ohio joint venture, signalling a cautious industry shift as EV demand stabilises after a period of weakened sales and strategic realignments.
General Motors and LG Energy Solution are preparing to restart battery-cell production next week at their joint venture plant in north-east Ohio after a seven-month pause, as the electric vehicle market begins to stabilise from a period of weaker demand. Tom Gallagher, vice-president of operations for Ultium, told Reuters that most of the workers who were laid off will return on Monday, with about 1,400 people expected to be working at the facility.
The restart marks a partial reversal from January, when the plant halted output because consumer appetite for electric vehicles had softened. The Ohio site opened in August 2022 as part of a $2.3bn investment and was designed to supply battery cells for GM’s EV line-up, according to Investing.com. It was the first of several US battery plants planned under the partnership, which has been central to GM’s push into electric vehicles.
The broader strategy has shifted as the market has changed. Reuters reported that Ultium’s Tennessee plant now produces batteries for energy storage systems rather than EVs, while earlier this week Samsung SDI bought GM’s stake in a separate joint venture for a planned Indiana battery-cell plant. The moves point to a more cautious approach across the industry as manufacturers adjust capacity to demand rather than expanding on the assumption that EV sales will keep rising at the same pace.
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