GM venture begins battery cell production at new Ohio factory

General Motors’ new electric vehicle battery plant in Ohio has started producing cells, which could help customers get federal tax credits.

The plant in Warren, Ohio is part of a joint venture with LG Energy Solution.

The joint-venture plant is focused on training as it prepares to ramp up manufacturing. A spokeswoman for the venture said it is producing cells but they are not yet being shipped.

They will go into vehicles with GM’s Ultium batteries, which currently include Hummer EVs, Chevrolet Silverado EV pickups and the Cadillac Lyriq electric SUV.

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The GMC HUMMER EV SUV completes the HUMMER EV family and features a 126.7-inch wheelbase for tight proportions and a maneuverable body, providing remarkable on- and off-road capability. (GMC/Fox News)

Eventually, though, the plant should help GM’s EVs meet requirements to qualify for a $7,500-per-vehicle federal tax credit.

President Biden recently signed legislation imposing new sourcing rules on battery components and critical minerals that take effect Jan. 1 for electric vehicles to be eligible for the tax credits.

Under the Inflation Reduction Act, electric vehicles and their batteries must be manufactured in North America to get the credit.

GM headquarters in Detroit

The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan. (REUTERS/Rebecca Cook/Reuters Photos)

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Battery minerals must be mined or recycled on the continent as well, or half the tax credit would be lost. The batteries also can’t have any components from China, another difficult hurdle.

The requirements are designed to build a North American supply chain for EVs so the country isn’t relying on China and other overseas countries.

Cadillac Lyriq

Defined by taut lines and clean surfaces, LYRIQ is assertive and modern, characterized with a low, fast roofline and wide stance that emphasize agility and convey confidence. (Cadillac/Fox News)

The $2.3 billion, 2.8-million-square-foot battery plant now employs 800 people, and eventually it will have 1,300.

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The companies are considering building a battery cell manufacturing plant in Indiana.

It would be the fourth battery plan developed by the companies’ Ultium Cells LLC joint venture.

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The others are in Michigan and Tennessee.

The Associated Press contributed to this report.

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