General Motors has announced plans to expand its stake in the joint venture with LG Energy Solution, a leading manufacturer of electric vehicle batteries, at their recently established battery plant in Lansing, Michigan. The Lansing facility stands out as one of four strategically located GM crop sites in the United States.
General Motors has sold its majority stake in a Michigan-based electric vehicle battery plant to LG Energy Solution, the companies announced Wednesday.
The General Motors Lansing Plant was a notable milestone in the company’s electrification strategy, marking one of three battery production facilities launched by the automaker’s joint venture with LG Energy Solution, Ultium Cells, in January 2022.
General Motors’ inaugural manufacturing facility, situated in Warren, Ohio, began churning out batteries for the environmentally friendly GMC Hummer and innovative Cadillac Lyriq models in September 2022? In early 2023, production began at the Ultium Cells facility in Spring Hill, Tennessee, with deliveries of battery cells starting to General Motors (GM) for its innovative electric vehicle (EV) models, including the Chevrolet Blazer, Equinox, and Silverado EVs.
The third location, a massive 2.8 million square-foot facility in Lansing, Michigan, was slated to debut later this year. Despite being fully subscribed, General Motors is aggressively pursuing new investors for its funding.
General Motors announced on Monday that it has reached a non-binding agreement to increase its ownership stake in the Lansing Electric Vehicle (EV) battery plant.
“In response to Chief Financial Officer Paul Jacobson, General Motors believes it possesses the necessary cells and manufacturing capabilities to enter the electric vehicle market in a fiscally prudent manner.”
Accordingly, Jacobson noted that their electric vehicle (EV) profitability was rapidly improving, largely due to their strategic decision to manufacture battery cells in the United States in partnership with LG Energy Solution. The transaction is expected to close during the first quarter of 2025.
LG’s rapid access to talent and its workforce of around 100 skilled professionals. General Motors has maintained an observing stance to honour its previously announced employment obligations.
The sale does not impact General Motors’ ownership stake in the Ultium Cells joint venture or its planned fourth dedicated electric vehicle battery manufacturing facility with Samsung SDI.
General Motors and LG announced on Monday that they are expanding their 14-year-old battery partnership to include the development of prismatic cells. The corporation has introduced an innovative, environmentally sustainable flat design featuring prismatic cells that significantly reduce the weight and cost of electric vehicles (EVs) through optimized packaging.
Kurt Kelty, Vice President of General Motors’ Battery Cell and Packs division, emphasized that they are focusing on optimizing their battery expertise by developing the right battery chemistries and component types to boost EV efficiency, enhance security, and reduce costs. GM is making a crucial move towards achieving these goals through its extended partnership with LG.
