KB News Desk
LG Energy Solution is preparing to restart production at its Ohio battery plant with General Motors after a six-month shutdown, as signs of a recovery in global electric vehicle demand improve the outlook for the industry.
According to news reports on Wednesday, Ultium Cells Plant 1 in Warren, Ohio, will begin reinstating about 850 temporarily laid-off workers in phases from July 27 through mid-August. The joint venture plans to resume full-scale production in the fourth quarter after facility maintenance and a production ramp-up.
The plant suspended operations in January after demand for EVs weakened following the US government’s repeal of up to $7,500 in EV tax credits. At the time, about 480 workers were permanently laid off, and 850 were temporarily furloughed as General Motors grappled with rising battery inventories and slowed EV sales.
Ultium Cells had initially planned to recall furloughed workers in June but delayed the move, citing market conditions.
The restart comes as the global EV market shows signs of recovery. According to Benchmark Mineral Intelligence, global EV sales rose 7 percent on-year to 2 million units in June, while first-half sales increased 2 percent to 9.6 million units. BloombergNEF forecasts EVs will account for 27 percent of global vehicle sales this year, up from 9 percent in 2021.
The recovery is expected to lift LG Energy Solution’s overall factory utilization rate from 46.9 percent in the first quarter to above 60 percent in the second half.
The company’s second US joint venture with GM in Spring Hill, Tennessee, also resumed operations this month after being converted to produce lithium iron phosphate batteries for energy storage systems. About 700 furloughed workers have also returned to the plant.
