The facility, which is expected to have an annual production capacity of about 40GWh, will most likely be situated in Ohio. In addition, LG Chem and General Motors are constructing a $2.3 billion battery facility in the state.
Localizing battery manufacturing in the United States is critical for manufacturers seeking to qualify for the $7,500 per car tax credit, which requires EVs to be manufactured in the United States. Foreign automakers are concerned that the new tax credits would discriminate against firms that do not have manufacturing plants in the United States.
