GM announced plans to sell its stake in the nearly completed Lansing, Michigan, EV battery plant to joint venture partner LG Energy Solution. The Lansing facility is one of four planned GM plants to open in the US.
GM sells off its stake in Michigan EV battery plant
The Lansing plant was one of three battery plants GM announced in January 2022 through its joint venture with LG, Ultium Cells.
GM’s first plant, in Warren, Ohio, began producing batteries for the GMC Hummer and Cadillac Lyriq in September 2022. Earlier this year, the Ultium Cells plant in Spring Hill, TN, began shipping battery cells to GM for its new EV models, such as the Chevy Blazer, Equinox, and Silverado EVs.
The third, a 2.8 million sq ft facility in Lansing, Michigan, was scheduled to open later this year. Although it is nearly complete, GM is selling off its investment.
GM announced on Monday that it had reached a non-binding agreement to sell its stake in the Lansing EV battery plant.
According to CFO Paul Jacobson, GM believes it has “the right cell and manufacturing capabilities in place to grow in the EV market in a capital efficient manner.”
Jacobson added, “Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the US with LG Energy Solution.” The transaction is expected to close in the first quarter of 2025.
LG will have immediate access to the facility and its nearly 100 employees. GM said the plant remains on track to meet its previously announced employment commitments.
The sale does not impact GM’s ownership in the Ultium Cells joint venture or GM’s fourth planned EV battery plant with Samsung SDI.
In a separate press release Monday, GM and LG announced they are extending their 14-year battery partnership to include prismatic cell development. The company said with a more efficient flat design, prismatic cells can reduce the weight and cost of EVs with space-efficient packaging.
Kurt Kelty, GM vice president of battery cell and packs, said, “We’re focused on optimizing our battery technology by developing the right battery chemistries and form factors to improve EV performance, enhance safety, and reduce costs.” GM is taking an “important step” toward these goals by extending its partnership with LG.
