Big announcement big joint venture Involving batteries how much of the Demand the GM has over the next five Years or so will this facility be able To provide what we think this is a very Important strategy and we're honored to Be working with LG Chem we have a long Relationship and when we look at their Technical capability coupling that with The expertise of the two companies we Think this is really going to advance Our path to an all-electric future and This battery plant is a very important Part to providing the volume for the Electric vehicles will appear to be Producing in the United States so it Will be very significant it also is in Lordstown Ohio which is no coincidence Because there is that facility being Closed down and General Motors closed Down in Lordstown how will this compare With what you're losing in Lourdes sound Well from the assembly plant that Because of the demand of small cars we Announced enclosed that has been Purchased by Lordstown motors and there Is a plan for them to build commercial Vehicles we're very focused on the Lordstown area because of the great Capabilities of the workforce and the The warm welcome that we're getting from The state of Ohio to do this work there So we think it's very significant it can Be we anticipate 1,100 jobs being
Created so very significant commitment To Ohio and the capability that they Have there so mr. Shain a similar Question to you from LG Chem point of View how significant is this new venture In terms of your overall plans for Supplying batteries for electric Vehicles this is very significant to LG Chem LG Chem has been developing and Commercializing battery technology since 1995 so we have some 25 years of Experience in commercializing battery And this is a quite honor for us I'm Historic event for energy came to join General Motors to form the joint venture In Lordstown Ohio we are bringing the Best battery technology to the joint Venture to create a future together to Share the vision that Marybeth laid out Or future electric so some very obvious Is important for General Motors as it Moves forward with electric vehicles at The same time the amount of money paid For the employees for this venture will Be less than what was played in the past Is that something we should expect going Forward as we move to electric vehicles Well I think you have to look at how how Vehicles and the tradition of what is an Assembly rate versus a component rate we Have to be competitive to win in the Electric vehicle space and so we will Have component level wages but those That is a very competitive wage so I
Think this is important for us to Understand as we move forward Mary obviously this is a significant Move for general is not just to move an Electric vehicle it's also but in on the Financing side because there's a fair Amount of investment that's required as You move into electric vehicles as well As autonomous vehicles this will help With the investment are you giving up Some of the upside though as well Through a joint venture I actually think You know we're bringing expertise that Is going to allow both companies LG Chem And General Motors to win and be leaders In battery technology and supporting the Battery electric vehicles that are going To win in the marketplace so I see this As one plus one is equal in three where Else Mary will you'll be looking for a Supply of batteries besides this joint Venture with LG Chem well LG has already Been a very significant battery cell Supplier for General Motors this is a Huge step and and making it even more Important with the strategic alignment So you know we do have other battery Manufacturers but LG is this is very Significant and we see it providing much Of the battery cells that we need for Our North America plants where we're Mindful the fact that you've got an UAW Deal done after some difficulty is it a Coincidence that this is being announced
Now or did this have to wait actually For the new UAW agreement so you can go Forward with this joint venture this is Actually something that LG Chem and General Motors have discussed and we Were able to put the deal together very Quickly and we're announcing it because We're excited to get the project going Not only the battery cell manufacturing But the joint development agreement that We have so we're on a very accelerated Timeline because we believe in an All-electric future yeah how accelerated When when we start first seeing Batteries come out of this Adventure well I don't think we've Announced a specific date but you know We plan to be breaking ground next year And then we'll we'll move as quickly as We can while still you know partnering With LG and their other supply Capability
