[Edaily Reporter SOYEON KIM ] Production of electric vehicle batteries is set to resume at Plant 1 of Ultium Cells in Ohio, jointly operated by U.S.-based General Motors (GM) and LG Energy Solution. The plant, which had suspended operations in January due to a slowdown in EV demand, is restarting after a seven-month hiatus. This is seen as a sign that the North American EV market, which had experienced a sharp contraction, is bottoming out and showing signs of recovery.

According to industry sources and foreign media reports on the 13th, Ultium Cells, a joint venture (JV) between GM and LG Energy Solution, plans to resume operations at its Warren, Ohio, battery plant starting next week. Tom Gallagher, vice president of operations at Ultium Cells, stated in an interview with Reuters that most of the workers who had been temporarily laid off will return to battery production duties starting on the 17th. Following the restart, the plant will employ approximately 1,400 workers.

Ultium Cells is a battery joint venture established by GM and LG Energy Solution. Its first plant, located in Ohio, will resume production of battery cells for GM electric vehicles. The second plant, a joint venture in Tennessee, produces lithium iron phosphate (LFP) batteries for energy storage systems (ESS) rather than for electric vehicles.

Amid a clear recovery in the European EV market, analysts suggest that the North American market has also entered the early stages of recovery. Until now, U.S. automakers had scaled back or revised their electrification investments and production plans in response to stagnant EV demand. The restart of these plants is interpreted as a signal that U.S. automakers are preparing to expand EV production once again.

During its second-quarter earnings announcement late last month, LG Energy Solution stated, “We are preparing to launch the 46 Series production line at our Arizona plant with the goal of commencing operations in the fourth quarter of this year.” The Arizona plant is LG Energy Solution’s first production hub dedicated exclusively to cylindrical batteries. The company plans to supply the 46 Series to local automakers (OEMs) and global OEMs. The company also expects a gradual increase in the utilization rate of its joint-venture plants in the North American market this year.

In fact, the average utilization rate of LG Energy Solution’s domestic and overseas production facilities has shown a slight upward trend. The average utilization rate for the first half of this year was 52.8%, up 1.5 percentage points from the same period last year (51.3%). The utilization rate, which at one point exceeded 70% in 2022, had been on a downward trend due to the “chasm” but is now rebounding slightly.

Attention is focused on whether electric vehicle sales and battery plant capacity utilization rates will expand in tandem in the North American market. If electric vehicle battery production expands in the second half of the year alongside energy storage systems (ESS), for which demand is expected to grow in North America, this could help the three major South Korean battery companies return to annual profitability.

In the second quarter of this year, LG Energy Solution posted an operating profit of 113.3 billion won. During the same period, SAMSUNG SDI CO.,LTD. and SK On recorded operating profits of 203.8 billion won and 821.8 billion won, respectively. This marks the first time in seven quarters—since the third quarter of 2024—that all three major South Korean battery manufacturers have posted profits. An industry official stated, “If demand for EV batteries recovers sooner than expected, in addition to the improvement in ESS performance, the prospects for the three battery companies to return to annual profitability will become even more promising.”