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Released September 13, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--General Motors Company (NYSE:GM) (GM) (Detroit, Michigan) and Hyundai Motor Group (Seoul, South Korea) recently signed a memorandum of understanding (MOU) to "explore future collaboration across key strategic areas," including vehicle production and clean-energy technologies. Industrial Info is tracking projects attributed to both GM and Hyundai.
In the press release, General Motors Chief Executive Officer Mary Barra said, "a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation."
Following the signing of the non-binding MOU, "assessment of opportunities and progression towards binding agreements will begin immediately."
GM's latest financial guidance for 2024 anticipates capital expenditures (capex) of between $10.5 billion and $11.5 billion, which includes investments in the company's battery cell manufacturing joint ventures.
Late last month, GM and Samsung SDI closed an agreement for its combined $3.5 billion electric vehicle (EV) battery joint venture in New Carlisle, Indiana, where site work is underway.
The approximately 2.5 million-square-foot plant will sit on 680 acres and is designed to house production lines to build nickel-rich prismatic batteries at a capacity of 30 gigawatt-hours (GWh) per year. Mass production is expected to begin in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read the project report.
In terms of vehicle production, GM is exploring retooling/converting a portion of its existing 3.4 million-square-foot Lansing Grand River Assembly (LGR) plant in Michigan to allow for EV assembly. According to local news media, GM estimates that the transition will preserve at least 650 jobs and create at least 50 new jobs. Industrial Info is tracking the $1.25 billion project with a medium probability (70-80%) of moving forward as planned, with kickoff tentatively expected in March 2025. Click here to read more project information.
In July, GM announced it received a $500 million grant for the project from the U.S. Department of Energy's Domestic Manufacturing Conversion Grant program, which supports domestic production of hybrid, plug-in electric hybrid, plug-in electric, and hydrogen fuel cell electric vehicles.
But GM hasn't turned its focus away from internal combustion engine vehicles, and one example is the automaker's upgrades/additions at its Flint Metal Center in Michigan. The $233 million project is underway and entails adding new stamping dies, production equipment and press refurbishments and other supporting equipment and systems to support the production of GM's next-generation internal combustion engine heavy-duty trucks. Construction is expected to wrap up in early 2025. Subscribers can read the detailed project report.
GM's newly announced collaborative partner, Hyundai, meanwhile, is spending about $13 billion for an EV assembly plant and adjacent lithium-ion battery plant at an approximately 2,900-acre site in Ellabell, Georgia.
The assembly plant project includes the construction of 11 buildings (up to 17 million square feet of space) to produce up to 300,000 EV units per year. Meanwhile, the battery plant is a joint venture with LG Energy Solution (Seoul, South Korea), and the plant is designed for a production capacity of 30 GWh worth of batteries per year. The end-product would be supplied to Hyundai's production facilities for its Hyundai, Kia and Genesis EV models.
Hyundai also is expanding its vehicle assembly plant in Montgomery, Alabama to produce EVs, beginning with its Santa Fe hybrid and GV70 all-electric models. Subscribers can read detailed information on the Ellabell EV assembly and battery projects, as well as the Montgomery project. All three are expected to be completed by the end of 2025.
GM and Hyundai's joint venture comes at a somewhat perilous time for EV production in the U.S. For example, Ford Motor Company (NYSE:F) (Dearborn, Michigan) last month said it planned to delay production at an EV plant under construction and reduce its annual planned EV capex by 10%. For more information, see August 23, 2024, article - Ford Becomes Latest Automaker to Scale Back EV Production.
Although the automakers also aim to explore sourcing raw battery materials, several U.S. automakers' lithium-mining investments are facing headwinds. For more information, see September 3, 2024, article - U.S. Automakers' Lithium Investments Face Headwinds.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
In the press release, General Motors Chief Executive Officer Mary Barra said, "a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation."
Following the signing of the non-binding MOU, "assessment of opportunities and progression towards binding agreements will begin immediately."
GM's latest financial guidance for 2024 anticipates capital expenditures (capex) of between $10.5 billion and $11.5 billion, which includes investments in the company's battery cell manufacturing joint ventures.
Late last month, GM and Samsung SDI closed an agreement for its combined $3.5 billion electric vehicle (EV) battery joint venture in New Carlisle, Indiana, where site work is underway.
The approximately 2.5 million-square-foot plant will sit on 680 acres and is designed to house production lines to build nickel-rich prismatic batteries at a capacity of 30 gigawatt-hours (GWh) per year. Mass production is expected to begin in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read the project report.
In terms of vehicle production, GM is exploring retooling/converting a portion of its existing 3.4 million-square-foot Lansing Grand River Assembly (LGR) plant in Michigan to allow for EV assembly. According to local news media, GM estimates that the transition will preserve at least 650 jobs and create at least 50 new jobs. Industrial Info is tracking the $1.25 billion project with a medium probability (70-80%) of moving forward as planned, with kickoff tentatively expected in March 2025. Click here to read more project information.
In July, GM announced it received a $500 million grant for the project from the U.S. Department of Energy's Domestic Manufacturing Conversion Grant program, which supports domestic production of hybrid, plug-in electric hybrid, plug-in electric, and hydrogen fuel cell electric vehicles.
But GM hasn't turned its focus away from internal combustion engine vehicles, and one example is the automaker's upgrades/additions at its Flint Metal Center in Michigan. The $233 million project is underway and entails adding new stamping dies, production equipment and press refurbishments and other supporting equipment and systems to support the production of GM's next-generation internal combustion engine heavy-duty trucks. Construction is expected to wrap up in early 2025. Subscribers can read the detailed project report.
GM's newly announced collaborative partner, Hyundai, meanwhile, is spending about $13 billion for an EV assembly plant and adjacent lithium-ion battery plant at an approximately 2,900-acre site in Ellabell, Georgia.
The assembly plant project includes the construction of 11 buildings (up to 17 million square feet of space) to produce up to 300,000 EV units per year. Meanwhile, the battery plant is a joint venture with LG Energy Solution (Seoul, South Korea), and the plant is designed for a production capacity of 30 GWh worth of batteries per year. The end-product would be supplied to Hyundai's production facilities for its Hyundai, Kia and Genesis EV models.
Hyundai also is expanding its vehicle assembly plant in Montgomery, Alabama to produce EVs, beginning with its Santa Fe hybrid and GV70 all-electric models. Subscribers can read detailed information on the Ellabell EV assembly and battery projects, as well as the Montgomery project. All three are expected to be completed by the end of 2025.
GM and Hyundai's joint venture comes at a somewhat perilous time for EV production in the U.S. For example, Ford Motor Company (NYSE:F) (Dearborn, Michigan) last month said it planned to delay production at an EV plant under construction and reduce its annual planned EV capex by 10%. For more information, see August 23, 2024, article - Ford Becomes Latest Automaker to Scale Back EV Production.
Although the automakers also aim to explore sourcing raw battery materials, several U.S. automakers' lithium-mining investments are facing headwinds. For more information, see September 3, 2024, article - U.S. Automakers' Lithium Investments Face Headwinds.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
