General Motors transfers stake in Lansing plant to LG Energy Solution to optimize EV production and enhance operational efficiency.
GM Divests Stake in Lansing Battery Plant to LG Energy Solution
General Motors (NYSE: 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, contingent on customary closing conditions.
This move allows LG Energy Solution to assume full operational control of the Lansing facility while GM retains its ownership in Ultium Cells LLC, the overarching joint venture responsible for producing battery cells for the company’s electric vehicles (EVs).
Strategic Shift Targets Operational Efficiency
The sale enables GM to recover its investment in the Lansing facility while continuing to meet increasing demand for EVs through its other Ultium Cells plants in Warren, Ohio, and Spring Hill, Tennessee. LG Energy Solution will gain immediate access to the Lansing facility to expedite the installation of manufacturing equipment.
Paul Jacobson, GM’s executive vice president and CFO, emphasized the strategic importance of the decision, stating, “Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the U.S. with LG Energy Solution. This transaction helps streamline our operations and reinforces our commitment to growing with the EV market in a capital-efficient manner.”
Lansing Facility Remains on Track
Despite the ownership transition, the Lansing facility, which currently employs nearly 100 people, remains on track to meet its employment and production commitments. Once operational, the plant will contribute to GM’s all-electric vehicle lineup, powering models such as the Chevrolet Silverado EV, GMC Sierra EV, and Cadillac LYRIQ.
GM’s Ultium Cells plants have already created thousands of jobs in the U.S. and are critical to the production of GM’s diverse EV portfolio.
Broader Impact on GM’s EV Strategy
This transaction aligns with GM’s broader goal of driving EV profitability by leveraging strategic partnerships and advanced manufacturing capabilities. By shifting operational control to LG Energy Solution, GM aims to enhance efficiency and focus on expanding its EV offerings in a competitive market.
GM remains committed to its vision of an all-electric future, utilizing Ultium Cells technology to produce batteries that power a wide range of EVs while maintaining lower emissions and higher performance standards.
Cautionary Note on Forward-Looking Statements
General Motors has issued a cautionary note, highlighting that forward-looking statements in this announcement are subject to change and depend on various factors. The company encourages stakeholders to review its latest filings with the U.S. Securities and Exchange Commission for a detailed assessment of potential risks and variables.
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