GM to announce second U.S. battery plant, in Tennessee, with LG Chem -sources

General Motors Co (GM.N) and South Korean joint-venture partner LG Chem Ltd (051910.KS) will announce a second U.S. battery cell manufacturing plant on Friday, revealing plans for a $2.3 billion factory in Spring Hill, Tennessee, three people familiar with the matter said.

The plant will use a different, more cost-effective battery chemistry than the one the companies will offer from the joint-venture plant they are building in Lordstown, Ohio, the sources said on Wednesday.

The battery will be for the Cadillac Lyriq electric crossover vehicle that GM will begin building at its nearby Spring Hill assembly plant next year, the sources said.

The timing of the Tennessee battery plant’s opening is unclear, but there will be a period when the battery is supplied for the Lyriq by another LG facility until the Tennessee plant opens and it will not come from Lordstown, one of the sources said.