They will invest up to a total of $2.3 billion (£1.7bn) in the equally owned joint venture that will establish a battery cell assembly plant in the Lordstown area of Northeast Ohio and create more than 1,100 new jobs.
The companies say the facility will use the “most advanced” manufacturing processes to produce the cells efficiently, with little waste and be “extremely flexible” and able to adapt to ongoing advances in technology and materials.
They add the collaboration will help drive down battery costs while improving the technology for customers.
Mary Barra, GM Chairman and CEO said: “With this investment, Ohio and its highly capable workforce will play a key role in our journey toward a world with zero emissions.
“Combining our manufacturing expertise with LG Chem’s leading battery cell technology will help accelerate our pursuit of an all-electric future. We look forward to collaborating with LG Chem on future cell technologies that will continue to improve the value we deliver to our customers.”