LG Chem and China's CATL have been put on the list of partners for the joint venture, which is pushed by U.S. automaker General Motors to produce its own electric vehicle batteries.
According to industries and foreign media on Oct. 4, GM proposed the construction of an electric vehicle battery plant to the UAW, which is currently on strike. The proposal calls for the establishment of an electric vehicle battery plant around the assembly plant in Rose Town, Ohio, and hiring some workers at the plant.
If GM sets up a battery plant due to its low expertise in battery cells and low investment capacity, it is highly likely that it will carry out a joint venture with a battery company.
The Wall Street Journal reported that LG Chem, which is currently supplying batteries to GM, and CATL of China are likely to be a joint partner.
If GM's electric vehicle battery joint venture becomes a reality, market watchers predict that LG Chem, currently the largest battery supplier, will likely become a partner.
LG Chem has been in a long-standing partnership with GM, supplying batteries for the Chevrolet Volt, the world's first mass-produced electric vehicle that came out in 2009.
However, it remains to be seen whether the company's proposal will become a reality as the union is said to be negative about GM's proposal.
"Such speculation comes from the market because of its strong relationship with GM," LG Chem said, adding, "It is considering various measures related to investment in batteries for electric vehicles, but there is no details yet to be confirmed on the joint venture with GM."