GM has announced plans to sell its stake in the nearly completed Lansing, Michigan, EV battery plant to joint venture partner LG Energy Solutions. The Lansing facility is one of four GM plants slated to open in the US.
GM is selling its stake in the Michigan EV battery plant
The Lansing plant was one of three battery plants GM announced in January 2022 for its Ultium Cells partnership with LG.
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 , they are not. such as the Chevy Blazer, Equinox, and Silverado EVs.
A third, a 2.8 million sq ft facility in Lansing, Michigan, was due to open later this year. Although it is almost finished, GM is selling its investment.
GM announced Monday that it has 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 to grow in the EV market effectively.”
Jacobson added, “Our EV profitability is growing rapidly because of our 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 approximately 100 employees. GM said the facility is on track to meet previously announced employment commitments.
The sale does not affect GM's ownership of the Ultium Cells joint venture or GM's planned fourth EV battery plant through Samsung SDI.
In a separate press release on Monday, GM and LG announced that they are expanding their 14-year battery partnership to include the development of start-up cells. The company said that with a highly efficient flat design, prismatic cells can reduce the weight and cost of EVs through space-efficient packaging.
Kurt Kelty, GM's vice president of battery cells and packs, said, “We are focused on improving our battery technology by developing the right battery chemistries and developing features to improve EV performance, improve safety, and reduce costs.” GM is taking a “significant step” toward these goals by extending its partnership with LG.
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