LG Chem Ltd., South Korea's leading chemical company, and US auto giant General Motors have reportedly reached an agreement to set up an electric vehicle battery manufacturing joint venture in the United States.
The two sides are expected to make an announcement on Thursday (US time) on establishing a 50:50 joint venture in Ohio, Reuters reported, citing unnamed sources.
GM and LG Chem are expected to chip in more than $1 billion to set up an EV battery producing facility, Reuters said.
LG Chem declined to comment on the matter, saying it can't confirm a deal with its customers.
LG Chem has been keeping a close relationship with GM, supplying batteries to the US automaker's Chevrolet Bolt since the EV was launched in 2009.
If the deal is confirmed, the Ohio plant will be LG Chem's second EV battery-making facility in the US following its Michigan plant built in 2012.
LG Chem was the world's fourth-largest shipper of EV batteries in the first half of the year, with a capacity of 8.4 gigawatt hours, according to data from SNE Research. (Yonhap)