General Motors (GM) announced plans to sell its stake in a $2.6 billion electric vehicle (EV) battery cell plant in Michigan to its joint venture partner, LG Energy Solution (LGES).
The automaker expects to recover approximately $1 billion from the sale. This is part of a nonbinding agreement set to close in the first quarter of next year.
Details of the Sale
The nearly completed, 2.8-million-square-foot Lansing, Michigan, plant is the third facility under the Ultium Cells LLC joint venture, following operational plants in Ohio and Tennessee.
IGM plans to recoup its $1 billion investment in the facility.
Despite the sale, General Motors’ overall ownership stake in the Ultium Cells joint venture. Its plans for future collaboration with LGES remain unaffected.
Need Career Advice? Get employment skills advice at all levels of your career
Strategic Implications
GM’s decision comes amid efforts to align EV production with consumer demand, which has been slower than anticipated.
Uncertainties surrounding federal incentives for EV manufacturing and purchases in the US adds to the automaker’s strategic considerations.
Paul Jacobson, GM’s Chief Financial Officer, said:
“This transaction will help LG Energy Solution meet demand by leveraging capacity that’s nearly ready to come online and will make GM even more efficient.”
Extended Partnership with LGES
Beyond the Lansing plant sale, GM announced an extension of its 14-year battery technology partnership with LGES.
The collaboration will now include the development of prismatic battery cells, a new type of cell design with significant advantages:
Prismatic cells feature a flat, rectangular shape, allowing for better packaging within battery modules and packs.
The design is expected to simplify manufacturing by reducing the number of components and modules, lowering costs and improving EV performance.
Prismatic cells offer improved structural integrity.
Kurt Kelty, General Motors’ Vice President of Battery Cell and Pack, said:
“By extending our partnership with LG Energy Solution, we’re taking an important step towards optimizing our battery technology, improving EV performance, and reducing costs.”
Looking for a job? Visit whatjobs.com today
Broader EV Strategy
The sale of the Lansing plant stake aligns with GM’s broader EV strategy, including ongoing collaborations with other partners like Samsung SDI for a separate battery cell facility.
GM remains committed to diversifying its battery technologies and expanding beyond the “Ultium” pouch cells to include prismatic and other cell formats.
Hiring? Post jobs for free with WhatJobs
Looking Ahead
As the Lansing facility comes online under LGES’s management, General Motors and LGES aim to leverage their extended partnership to advance battery innovation and support the evolving EV market.
This move reflects GM’s focus on adapting to market dynamics while maintaining a strong foundation for future growth in the competitive EV landscape.
