GM to Sell Lansing Battery Plant Stake to LG Energy Solution
General Motors (GM) has announced plans to sell its stake in the nearly completed Ultium Cells LLC battery cell plant in Lansing, Michigan, to its joint venture partner, LG Energy Solution.
The non-binding agreement is expected to close in the first quarter of 2025, pending standard regulatory and closing conditions.
The move is part of GM's broader strategy to streamline its operations while continuing to meet the growing demand for EVs.
Recouping investment without losing ground
The transaction allows GM to recoup its investment in the Lansing facility without altering its ownership stake in Ultium Cells LLC. The automaker will continue to operate and leverage its other Ultium Cells plants in Warren, Ohio and Spring Hill, Tennessee.
These plants are vital to GM's EV production, supplying battery cells for some of its most popular models.
Once finalised, LG Energy Solution will gain immediate access to the Lansing plant to begin equipment installation. Currently employing approximately 100 people, the facility remains on track to meet its previously announced employment commitments.
Strategic collaboration for efficiency
Paul Jacobson, Executive Vice President and CFO at GM, reinforced the importance of collaboration in improving GM's competitive edge in the EV market, stating: "Our EV profitability is rapidly improving thanks partly to our strategic decision to build battery cells in the US with LG Energy Solution.
"It will be years before some of our competitors approach this level of performance. This transaction will also help LG Energy Solution meet demand by leveraging nearly ready capacity to come online and make GM even more efficient."
The transaction represents a strategic alignment between GM and LG Energy Solution, with both companies benefiting from the plant's nearly completed state and future production potential.
Powering the next generation of EVs
GM's Ultium Cells facilities have been instrumental in advancing the company's EV ambitions. These plants produce the battery cells powering GM's latest EVs, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac LYRIQ EV, Chevrolet Blazer EV and GMC HUMMER EV.
Under LG Energy Solution's management, the Lansing facility is expected to further bolster this lineup, ensuring that the growing demand for GM's EV offerings is met efficiently.
The partnership between GM and LG Energy Solution has driven innovation in EV battery technology and created thousands of advanced manufacturing jobs in the US. The combined efforts have positioned Ultium Cells as a leader in battery cell production, fueling GM's transition to an all-electric future.
Building Toward an All-Electric Future
As GM continues its push for electrification, the company remains focused on leveraging advanced technology and strategic partnerships. GM can optimise capital efficiency by selling its stake in the Lansing facility while ensuring its EV production goals stay on track.
With a robust portfolio of gasoline-powered vehicles and EVs under its Buick, Cadillac, Chevrolet and GMC brands, GM is charting a course toward a safer, smarter and lower-emission transportation future.
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