Workers from General Motors (GM) Lordstown Plant in Ohio have ratified a deal between the United Auto Workers (UAW) union and Ultium Cells for the production of electric vehicle (EV) batteries, marking a significant development in the EV industry.
Ultium Cells, a joint venture between GM and LG, produces batteries for GM’s EVs. The agreement, ratified over the weekend, covers 1,600 hourly workers represented by the UAW at the Lordstown Plant.
Under the UAW deal with Ultium, workers will receive higher wages, overtime provisions, and 70 minutes of breaks per shift. General Motors will also implement health and safety programs for the employees at the Lordstown Plant.
President Biden weighed in on the agreement, highlighting the progress made in Lordstown under his administration compared to the previous one. “Today, Lordstown is a comeback story, and it didnât happen by accident. With the help of my Investing in America agenda, the UAW and companies like General Motors are building the future of autos in America while we bring back good paying union jobs to communities like Lordstown,” President Biden stated.
However, General Motors has faced challenges in the EV market, leading to a reduction in its EV production targets for 2024. The company recently adjusted its production targets from between 200,000 and 300,000 units to between 200,000 and 250,000 units. Despite this, General Motors CFO Paul Jacobson expressed confidence in the company’s ability to achieve variable profit positivity on its EVs in the low 200,000 production range.
“We think we can still do that in, probably Q4 more than the second half. But we still think thatâs an achievable goal going forward,” Jacobson said.
