GM and LG Restart Ohio Battery Production After Seven Idle Months
GM and LG Energy Solution’s joint venture, Ultium Cells, is restarting EV battery cell production in Warren, Ohio next week, after a seven-month shutdown. Around 1,400 workers will be employed once the lines are back in operation.
This comes despite US EV sales rising 14.2% in Q2 2026, but still being 20.5% below the same period last year. The decision to restart production was influenced by policy changes and market dynamics rather than manufacturing issues.
The $7,500 federal tax credit for EVs was withdrawn, leading to a surge in sales prior to the shutdown. Following this, the market cooled, resulting in decreased demand for EV cells.
The Ohio plant specializes in large-format nickel cobalt manganese aluminium pouch cells for most GM EVs. Conversely, Tennessee and Indiana plants are being converted to focus on energy storage rather than car batteries.
While American battery capacity is expanding, the proportion dedicated to cars is shrinking, aligning with GM’s recent $11bn retreat from electric vehicles. However, restarting Ohio production won’t affect the Chevrolet Bolt, which already uses LFP cells sourced from China.