A U.S. battery-cell factory that had been in the works between General Motors Co.
 and LG Energy Solution
has been shelved indefinitely, people familiar with the matter said, marking a pause in the fast-growing partnership between GM and the Korean battery supplier.

Talks in recent months between GM and LG Energy executives ended without an agreement to move forward on what would have been the fourth U.S. battery plant to be developed by the companies through their 50-50 joint venture, Ultium Cells LLC, the people said.

GM executives over the past year have several times said they were close to outlining details for a fourth U.S battery-cell factory. Ultium Cells, run by executives from GM and LG Energy who were dispatched to the joint venture, operates a new plant in Ohio and is developing two others, one in Tennessee and one in Michigan, representing a total investment of more than $6.5 billion. 

GM is in discussions with at least one other battery supplier to proceed with an additional U.S. battery-cell factory, some of the people familiar with GM’s plans said. Details of those discussions couldn’t be learned. “We’ve been very clear that our plan includes investing in a fourth U.S. cell plant,” GM said, declining to discuss specifics.

GM said it is on track to hit one million EV sales annually in North America in 2025.

An expanded version of this story appears on WSJ.com.

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