General Motors has announced plans to sell its stake in its $2.6 billion battery cell plant jointly owned with LG Energy Solution. The transaction is reportedly worth $1 billion, equivalent to the automaker’s investment in the facility.
The two companies agreed in 2019 to build a battery factory in Lansing, Michigan, which was announced in January 2022. The plant would be the third established under the joint venture between GM and LGES, known as Ultium Cells LLC. The business entity already operates two facilities in Ohio and Tennessee.
GM has been adjusting its EV plans to deal with stalling demand and uncertainties surrounding the popular federal EV incentives as a new administration prepares to take over in January.
However, GM has clarified it is not pulling out of its battery JVs with LGES and Samsung SDI. According to GM’s CFO Paul Jacobson, GM still believes in EV batteries, “We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital efficient manner. When completed, this transaction will also help LG Energy Solution meet demand by leveraging capacity that’s nearly ready to come online and it will make GM even more efficient.”
The Lansing factory is expected to come online this month. It already employs about 100 workers.
