120524...R BIZ-ULTIUM 1...Lordstown...12-05-24...Zach Cherol of Canfield, Shift Leader Manager, talks about the process of producing the battery cells at Ultium Cells...by R. Michael Semple

EDITOR’S NOTE: This is No. 4 of the Top 10 stories of the year as voted on by newsroom staff.

LORDSTOWN — Members of the United Auto Workers union Local 1112 at Ultium Cells overwhelmingly ratified a labor contract in June; it was a vote that was truly historic.

It was the first union-management agreement for an electric-vehicle battery plant in the U.S.

Workers at the factory in favor of organizing and representation by the UAW in December 2022. They and management had been negotiating the agreement since February 2023.

“This is an invigorating moment for the UAW Local 1112 sisters and brothers at Ultium Cells. The ratification on this local contract provides tangible wage increases along with essential language that provides employees avenues for success,” Josh Ayers, UAW Local 1112 shop chairman, said then in a news release.

Ultium Cells is a joint venture between General Motors and South Korea’s LG Energy Solution to mass produce electric-vehicle battery-cells for GM’s electric vehicles, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV, as well as the GMC HUMMER EV Pickup and SUV.  

Some highlights of the four-year agreement were, according to a highlighter on UAW’s website before the vote, a wage increase from $26.91 per hour to $27.72 per hour in September, with starting wage increases each year thereafter to $30.88 per hour in September 2027.

Also, employees will receive a wage increase after one year of work at the facility, topping out at $35 per hour in 2027, according to the highlighter.

The pay for skilled trades workers increased to $38.16 per hour immediately upon ratification and would go to $39.30 per hour in September. In 2027, the hourly rate is $43.79, the highlighter shows.

In addition, employees will receive a one-time $3,000 lump sum payment.

“We are pleased with the results of a ratified contract, and it is a proud moment for everyone. Everyone should take some time to recognize your role in creating the first unionized battery manufacturing contract in the history of the United States. The contract captures the operational flexibility needed to be successful in the industry and recognizes employees’ efforts and continued success as a company. We look forward to the continuous partnership with the UAW as we make improvements and grow as a company,” the release stated.

Earlier this month, the factory celebrated another significant milestone — 100 million cells produced. To mark the moment, the factory hosted an event for employees.

The announcement of the joint venture to create Ultium Cells and build cells in Lordstown was made Dec. 5, 2019. Construction on the 2.8 million-square-foot factory — the size of 30 football fields — began in May 2020. Cell production launched in August 2022.

The battery cells there are large-format, pouch-type cells that use a state-of-the-art chemistry to produce a greater range at less cost, according to the company.

If the 100 million cells produced in Lordstown were laid end to end, they would circle the Earth’s equator about 1.5 times, according to the company.