LG bullish on EVs: New US plant will build motors, batteries – Roadshow

LG electric vehicle motor

LG’s electric motors is part of the Chevy Bolt’s powertrain.


Korean electronics maker LG intends to bolster its automotive business, building a new factory in Michigan to supply electric power trains to GM for the Chevrolet Bolt. The company announced it would set up a 250,000-square-foot facility in Hazel Park, near Detroit, which will begin producing electric power train components in 2018.

LG credits the introduction of the Chevrolet Bolt for increasing its automotive business, showing a 43 percent increase year-over-year for the first half of 2017. The Chevrolet Bolt, GM’s newest fully electric car, hit dealers in December last year, and has reported continuing sales growth.

The proximity of LG’s new factory to the GM factory producing the Bolt, also in Michigan, will create a more efficient supply chain. The Bolt uses a 150-kilowatt motor, driving the front wheels, powered by a 60-kilowatt-hour battery pack.

The number of unsold Bolts on dealer lots recently forced GM to slow production of the electric car. However, the company plans a nationwide marketing push in September, as more dealers around the country receive the car. Likewise, the popularity of the Tesla Model 3 could create more interest in electric cars, helping to boost Bolt’s sales.

Given LG’s investment, it looks like it expects Chevy Bolt sales to grow.

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