LG Energy Solution and General Motors(GM) have announced a two-point-six-billion-dollar project to build an electric vehicle(EV) battery plant in the U.S.

At an investment announcement event in Lansing, Michigan on Tuesday, the two companies said the third factory of their joint venture Ultium Cells will be built in the state capital by the second half of 2024.

The first two factories are under construction in the U.S. states of Ohio and Tennessee, both aiming at an annual production capacity of over 35 gigawatt hours(GWh).

The latest factory will likely launch mass production in early 2025, with its annual production capacity targeted to expand to 50 GWh, which is enough to make around 700-thousand EVs.

LG Energy Solution, the world's second-largest EV battery manufacturer, is seeking to expand its share in the North American market, which is forecast to grow rapidly from 46 GWh in 2021 to 286 GWh in 2025.

The South Korean firm earlier signed a deal with global carmaker Stellantis to build a battery plant with an annual production capacity of 40 GWh by the first quarter of 2024.