GM Sells $1 Billion Stake in Battery Joint Venture to LG Partner
General Motors (GM) is making headlines with its recent announcement to sell its stake in a $2.6 billion battery cell plant joint venture with LG Energy Solution for a hefty $1 billion. This move, which mirrors the initial investment made by GM in the facility, signifies a significant shift in the company’s electric vehicle (EV) strategy.
Back in 2019, GM and LG Energy Solution joined forces to construct a battery factory in Lansing, Michigan. Fast forward to January 2022, the plant was officially underway, marking the third facility established under the GM and LGES partnership, known as Ultium Cells LLC. Notably, GM and LG Energy Solution already operate two other facilities in Ohio and Tennessee.
GM’s decision to offload its stake comes against the backdrop of adjusting EV plans to navigate through tepid EV demand and uncertainties surrounding federal EV incentives amidst an impending administration change. However, it’s crucial to note that GM is not entirely severing ties with LGES and Samsung SDI in their battery joint ventures.
According to GM’s Chief Financial Officer, Paul Jacobson, the company remains committed to EV batteries. He stated, “We believe we have the right cell and manufacturing capabilities to align with the EV market’s growth in a competitive way. This transaction will also assist LG Energy Solution in meeting demand by utilizing upcoming capacity effectively, making GM’s operations more efficient.”
The Lansing factory is on track to begin operations later this month, employing approximately 100 workers. This strategic move by GM underscores the company’s commitment to staying nimble in the evolving EV landscape.
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