General Motors announced on Monday its intention to sell its stake in a $2.6 billion electric vehicle battery cell plant in Michigan to its joint venture partner LG Energy Solution, marking a significant development in the electric vehicle industry. The decision comes as GM aims to recoup its investment in the almost complete 2.8 million-square-foot facility located in Lansing, Michigan, expected to be approximately $1 billion.
The joint venture between General Motors and LG Energy Solution, known as Ultium Cells LLC, was established five years ago to advance battery cell technologies for electric vehicles. The sale of GM’s stake in the Michigan plant is part of a nonbinding agreement expected to close in the first quarter of next year.
The move by GM to divest from the Michigan plant reflects the company’s strategy to streamline production operations in response to slower-than-expected consumer demand for electric vehicles. It also highlights the shifting landscape surrounding federal incentives for EV manufacturing and purchasing in the United States.
In a statement, GM Chief Financial Officer Paul Jacobson emphasized the company’s confidence in its existing cell and manufacturing capabilities to expand alongside the growing EV market efficiently. The sale of the stake in the Lansing plant will allow LG Energy Solution to utilize the facility’s near-completion infrastructure for future operations.
Additionally, GM announced an extension of its longstanding partnership with LG Energy Solution to collaborate on the development of prismatic battery cells, a flat and rectangular cell design that offers space-efficient packaging and manufacturing simplifications. The innovation is expected to enhance EV performance, safety, and cost-effectiveness.
The sale of GM’s stake in the Michigan battery cell plant, coupled with the partnership extension with LG Energy Solution, underscores the automaker’s commitment to advancing battery technologies and optimizing its EV platforms. As the electric vehicle industry continues to evolve, GM’s strategic decisions and partnerships are poised to play a vital role in shaping the future of sustainable transportation.
