General Motors and LG Energy Solutions confirmed they would not open a fourth EV battery plant in the United States.
The move comes after the two companies could not reach an agreement, per CNBC.
Per the Wall Street Journal, LG Energy Solution executives were hesitant to commit to the project due to an uncertain macroeconomic outlook and the speed of recent investments.
According to sources, General Motors is still planning to move ahead with the fourth plant, but it will be with a different partner.
However, who that partner would be is still up in the air.
It is also unclear if General Motors would look to create another joint venture company with the battery supplier.
In a statement late Friday, General Motors confirmed that the second and third plants with LG Energy Solutions are still on track.
As well, a General Motors spokesperson noted that discussions around the fourth plant:
Remain ongoing between LG Energy Solution and GM, but no decision has been made.
Either way, this is not great news, but it could be an opportunity for General Motors to broaden its EV supply chain.
