LG Energy Solutions will partner with General Motors to build a new $2.1 billion battery plant in the United States

South Korean battery maker LG Energy Solutions said on Tuesday (Jan. 25) that it will jointly invest $2.1 billion with General Motors to build an electric vehicle battery factory in the United States.

A regulatory filing filed by LG Chemical, the parent company of LG Energy Solutions, shows that LG Energy Solutions and General Motors are expected to each contribute half of the funds through their joint venture in the United States, Ultium Cells, which will be the third joint venture battery plant between the two companies in the United States.

The documents show that the investment will be carried out in batches by 2026. Prior to the official announcement, LG Energy Solutions declined to provide details such as location and scale. The two companies are expected to announce details of their investments soon.

LG Energy Solutions accounts for more than 20% of the global electric vehicle battery market, supplying batteries to companies such as Tesla, Volkswagen and Hyundai.

The company has already established two plants with General Motors in Ohio and Tennessee to produce 70GWh of batteries and is expected to power about 1 million electric vehicles by 2024.

LG Energy Solutions has production sites in the United States, China, Korea, Poland and Indonesia. The company will go public later this week after the company conducted the largest IPO ever in South Korea, far more than previously recorded.

LG Energy Solutions' IPO was valued at around 70.2 trillion won ($58.57 billion), making it the third-largest company by market capitalization in South Korea, behind Samsung Electronics and SK Hynix.

However, some analysts believe that the valuation of LG Energy Solutions still looks low, after all, the company's market share is closely following the world's number one Ningde era. The Chinese company was recently valued at $213 billion.