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Tag: Automobile parts manufacturing

  • GM venture to invest additional $275M at Tennessee plant

    GM venture to invest additional $275M at Tennessee plant

    NASHVILLE, Tenn. — A joint venture between General Motors and South Korean battery company LG Energy Solution announced Friday that it will invest an additional $275 million to expand a Tennessee battery cell factory for electric vehicles.

    Officials with the companies had already pledged to spend $2.3 billion to build a battery plant in Spring Hill, Tennessee. The additional investment is anticipated to result in 40% more battery cell output when the plant is fully operational. Production at the 2.8-million-square-foot facility is expected to begin in late 2023.

    The Tennessee plant is one of three lithium-ion battery factories being built by the joint venture, Ultium Cells LLC. The other two are in Michigan and Ohio. A fourth is also expected, but the site has not yet been named.

    “We’re here because we know we can be successful with your partnership,” said Tom Gallagher, Ultium Cells vice president for operations, noting that GM already has employees training in Poland to start at the plant. “It’s an exciting journey that we’re on.”

    Overall the three plants are expected to create up to 6,000 construction jobs and 5,100 operations jobs when completed.

    U.S. Energy Secretary Jennifer Granholm has said the plants will help strengthen the nation’s energy independence and support President Joe Biden’s goal of having electric vehicles make up half of all vehicle sales in the United States by 2030. The Department of Energy has also made a conditional commitment to lend $2.5 billion to Ultium Cells to help build the plants.

    Last year Toyota announced it would build a $1.3 billion battery plant in North Carolina. Stellantis, formerly Fiat Chrysler, has said it will build two battery plants in North America. Ford is currently building three plants in Kentucky and Tennessee.

    Tennessee officials announced plans last month to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.

    The manufacturing facility will be built in Clarksville and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem.

    Republican Gov. Bill Lee touted the investments in Tennessee, saying, “We are now a state that’s the center of future of the automotive industry.”

    GM has set a goal of selling only electric passenger vehicles by 2035. The company plans to roll out 30 electric vehicles globally by 2025 and has pledged to invest $35 billion in electric and autonomous vehicles through that same year.

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  • GM venture to invest additional $275M at Tennessee plant

    GM venture to invest additional $275M at Tennessee plant

    NASHVILLE, Tenn. — A joint venture between General Motors and South Korean battery company LG Energy Solution announced Friday that it will invest an additional $275 million to expand a Tennessee battery cell factory for electric vehicles.

    Officials with the companies had already pledged to spend $2.3 billion to build a battery plant in Spring Hill, Tennessee. The additional investment is anticipated to result in 40% more battery cell output when the plant is fully operational. Production at the 2.8-million-square-foot facility is expected to begin in late 2023.

    The Tennessee plant is one of three lithium-ion battery factories being built by the joint venture, Ultium Cells LLC. The other two are in Michigan and Ohio. A fourth is also expected, but the site has not yet been named.

    “We’re here because we know we can be successful with your partnership,” said Tom Gallagher, Ultium Cells vice president for operations, noting that GM already has employees training in Poland to start at the plant. “It’s an exciting journey that we’re on.”

    Overall the three plants are expected to create up to 6,000 construction jobs and 5,100 operations jobs when completed.

    U.S. Energy Secretary Jennifer Granholm has said the plants will help strengthen the nation’s energy independence and support President Joe Biden’s goal of having electric vehicles make up half of all vehicle sales in the United States by 2030. The Department of Energy has also made a conditional commitment to lend $2.5 billion to Ultium Cells to help build the plants.

    Last year Toyota announced it would build a $1.3 billion battery plant in North Carolina. Stellantis, formerly Fiat Chrysler, has said it will build two battery plants in North America. Ford is currently building three plants in Kentucky and Tennessee.

    Tennessee officials announced plans last month to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.

    The manufacturing facility will be built in Clarksville and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem.

    Republican Gov. Bill Lee touted the investments in Tennessee, saying, “We are now a state that’s the center of future of the automotive industry.”

    GM has set a goal of selling only electric passenger vehicles by 2035. The company plans to roll out 30 electric vehicles globally by 2025 and has pledged to invest $35 billion in electric and autonomous vehicles through that same year.

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  • Norwegian battery firm plans $2.6 billion plant in Georgia

    Norwegian battery firm plans $2.6 billion plant in Georgia

    ATLANTA — A Norwegian company will build a giant electric battery factory just southwest of Atlanta, company and state officials announced Friday, investing up to $2.6 billion over multiple phases.

    Freyr Battery said it would build an initial plant that would produce batteries that could hold 34 gigawatt hours of electricity each year. Among battery plants currently operating, that would be the second-largest worldwide, behind a factory owned by Panasonic and Tesla in Nevada.

    Freyr CEO Tom Jensen told attendees at the announcement in the Atlanta suburb of Newnan that the company’s vision of using renewable energy to make batteries could play an important role in reducing carbon emissions from electricity generation and transportation. The company’s initial plan is targeted toward storing electricity produced by renewable sources and releasing it later, but Jensen said sales to vehicle makers could also be included.

    Jensen said battery production is a “massive growth opportunity,” predicting 70% of decarbonization efforts will somehow include batteries.

    “We want to build something that matters, something that we can be proud of something that will matter for our children,” Jensen said. “Because at the end of the day, the world needs to rapidly decarbonize the society.”

    The company said it plans an initial investment of $1.7 billion, and would hire 720 people at a site it has purchased in an industrial park near Newnan, about 35 miles (55 kilometers) southwest of Atlanta. Phases through 2029 involving $700 million of additional investment could include more production lines, material processing and other activities.

    Employees are projected to make an average of $60,284 a year, said Molly Giddens of the Coweta County Development Authority.

    Freyr, named for the Norse god of peace and fertility, rain, and sunshine, is also building a large factory in northern Norway and is planning a battery cell production facility in Vaasa, Finland.

    The company aims to make batteries, an electricity-intensive process, using renewable energy. In Georgia, that could mean buying electricity from a dedicated solar facility with battery storage run by a third party, the company said.

    Freyr said it looked at 130 sites in 25 states before selecting Georgia, citing the availability of engineers trained by Georgia Tech and other schools, job training, and proximity to Atlanta’s big airport, Savannah’s port, railroads and highways.

    The company said it sees opportunities in the United States in part because of incentives for renewable energy passed by Congress earlier this year. Freyr said it intends to seek federal grants or loans.

    In addition, the company said it is getting “strong” financial incentives from state and local officials in Georgia. The state plans to pay for worker training, and Freyr will eligible for up to $4.5 million in state income tax credits over five years, as long as workers make at least $31,300 a year. Coweta County will give property tax breaks for 20 years, Giddens said, not disclosing a projected value. She said the company would also get a “quality jobs creation grant.”

    It’s the second huge battery factory announced in Georgia. Korean firm SK Innovation has built a $2.6 billion plant in Commerce, northeast of Atlanta, with plans to hire 2,600 workers eventually.

    The state has targeted the electric vehicle industry. Hyundai Motor Group has announced plans to invest $5.5 billion in a plant near Savannah and hire 8,100 workers, also planning to make batteries there. Electric truck maker Rivian has plans to build a plant east of Atlanta, investing $5 billion and employing 7,500 workers.

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    Follow Jeff Amy on Twitter at http://twitter.com/jeffamy.

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  • EXPLAINER: Bikes, batteries and blazes spark concern in NYC

    EXPLAINER: Bikes, batteries and blazes spark concern in NYC

    NEW YORK — A weekend fire that injured over three dozen people — and forced firefighters to use ropes to pluck people from a 20th-story window — is drawing attention to a rising concern in New York City: battery fires that can arise in the electric bikes and scooters that have proliferated here.

    City officials are considering new laws after the fire department counted nearly 200 blazes and six fire deaths this year tied to problems with lithium-ion batteries in such “micromobility” devices.

    WHAT ARE THESE BATTERIES? ARE THEY THE SAME TECH USED IN PHONES AND CARS?

    Lithium-ion batteries are a Nobel Prize-winning innovation that entered the market in the early 1990s. Hailed as rechargeable, lightweight, powerful, durable and safe, the batteries have been envisioned as a key to greening the world’s energy supply by storing energy, including from the sun, wind and other renewable sources.

    The technology has woven its way into many people’s everyday lives, powering phones, laptop computers, vehicles and more.

    WHY CAN THEY CATCH FIRE?

    The batteries’ electrolyte — a solution that lets electrical current flow — is flammable, explains Massachusetts Institute of Technology materials chemistry professor Dr. Donald Sadoway. The substance was chosen for its ability to handle the voltage involved, but fires can happen if the batteries are overcharged, overheated, defective or damaged, for instance.

    Over the years, problems have periodically triggered fires involving laptops, cellphones, hoverboards, electric vehicles, airplanes and battery power storage installations. A U.N. aviation agency said in 2016 that lithium-ion batteries shouldn’t be shipped on passenger planes.

    Battery industry group leader James Greenberger notes that other energy sources aren’t trouble-free, and he says there’s nothing inherently unsafe about the batteries. But he said the industry is concerned about the fires lately in New York and worries that they could scare off consumers.

    “This shouldn’t be happening and we need to figure out what’s going on,” said Greenberger, the executive director of NAATBatt — the North American trade association for advanced battery technology developers, manufacturers and users.

    WHY ARE E-BIKES AND SCOOTERS GETTING SCRUTINY IN NEW YORK?

    The city has seen “an exponential increase” in fires related to faulty lithium-ion batteries in recent years, Chief Fire Marshal Daniel Flynn said. He said there have been more deaths and injuries already this year than in the past three years combined.

    “It’s a big issue,” he said at a news conference Monday, describing fires that occur without warning, grow rapidly and are tough to extinguish.

    The batteries “fail almost in an explosive way — it’s like a blowtorch,” he said.

    Saturday’s fire in a Manhattan apartment was sparked by a malfunctioning e-bike battery that residents were attempting to charge and left unattended while they fell asleep, he said. They were trapped when the battery, plugged in by the front door, caught fire, Flynn said.

    Electric bikes and scooters have become popular, non-gasoline-burning ways to make deliveries, commute and zip around a city that has promoted cycling in recent decades. For the “deliveristas” who carry restaurant takeout orders, the bikes are crucial tools of the trade.

    “What these workers have learned over the years, and they know it well, is that, like any equipment, it requires the maintenance required,” said Hildalyn Colón Hernández, a spokesperson for worker advocacy group Los Deliveristas Unidos. She said many workers have used their batteries for years without a hitch.

    WHAT’S CAUSING THE PROBLEM?

    There are different opinions. Greenberger, the industry group director, suggests there’s too little quality control on some of the largely imported batteries. Sadoway, the scientist, believes “we don’t have the appropriate protective measures” on e-bikes and scooters themselves to monitor the batteries for problems.

    Colón Hernández, the delivery worker advocate, thinks there need to be tougher standards around the batteries, such as regulations for businesses that sell or service them.

    WHAT IS NEW YORK CITY DOING ABOUT THIS?

    The Fire Department has repeatedly issued warnings and safety tips over the past year. Fire Commissioner Laura Kavanagh asked the federal Consumer Product Safety Commission in August to consider new regulations. Mayor Eric Adams pointed again to the CPSC on Monday.

    “The responsibility of navigating safe and unsafe batteries on the market should not fall to hard-working New Yorkers,” the mayor, a Democrat, said in a statement.

    Some city lawmakers want to take their own steps.

    A City Council committee has set a Nov. 14 hearing on various proposals. Some would require public education campaigns or safety reports. Another would prohibit the sale of some secondhand lithium-ion batteries, or e-bike or scooter batteries without certain seals of approval.

    Meanwhile, fire officials continue to urge everyone not to leave batteries to charge unattended, to check that they’re not damaged or near a heat source, and to make sure the batteries, chargers, cords and devices are all from the same manufacturer and used as instructed.

    “We understand the benefits that these batteries pose to our communities, and we want to encourage use of them, but safe use,” Flynn said. “So understand that it does pose a danger, and just use them safely.”

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  • Supplier to hire 630 near Hyundai’s EV plant in Georgia

    Supplier to hire 630 near Hyundai’s EV plant in Georgia

    STATESBORO, Ga. — An auto parts manufacturer plans to hire 630 workers at a new factory in southeast Georgia to supply Hyundai Motor Group’s first U.S. electric vehicle plant that’s under construction nearby, state officials said Monday.

    Joon Georgia will invest $317 million to produce parts in Bulloch County, Gov. Brian Kemp’s office said in a news release. The supplier will open shop roughly 30 miles (50 kilometers) west of the southeast Georgia site where Hyundai executives broke ground on the new EV plant two weeks ago.

    The company is “the first of many” expected to come to Georgia to supply the $5.5 billion Hyundai plant in Bryan County, Kemp said in a statement. The automaker plans to open its Georgia plant in 2025, producing up to 300,000 electric vehicles per year.

    Joon Georgia is a subsidiary of Ajin USA, which supplies parts to other Hyundai plants. It already operates a facility in Cusseta, Alabama, near the Georgia line that makes parts for Hyundai’s plant in Montgomery, Alabama, as well as for Kia’s auto plant in West Point, Georgia.

    The Joon Georgia factory near the Hyundai EV plant is expected to open near Statesboro in mid-2024, Kemp’s office said.

    “Joon Georgia’s announcement today is a landmark moment as we drive Georgia’s automotive industry into the future,” said Pat Wilson, commissioner of the Georgia Department of Economic Development, in a statement.

    State and local officials in Georgia lured Hyundai with tax breaks and incentives worth $1.8 billion, making it the state’s largest economic development deal.

    Wilson and other Georgia officials have insisted it’s a worthwhile investment. In addition to Hyundai hiring 8,100 workers, suppliers are expected to create thousands of additional jobs in the state.

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