GM will sell its battery cell plant to LG Energy Solution

First, the plant in Michigan: In the summer, it was reported that GM halted construction of the Lansing plant due to the slowdown in global demand for electric cars. The decision to sell its share of the factory to partner LGES does apparently “not change GM’s ownership interest in Ultium Cells LLC,” the carmaker emphasises. The latter is a joint venture between General Motors and LGES.

Ultium Cells already operates (and will continue to operate) two cell factories, one in Ohio and the second in Spring Hill, Tennessee. The plant in Warren has been producing since 2022, while the first cells from Spring Hill were only delivered this April – to the GM plant around half a mile away. The joint venture dropped plans for a fourth US battery factory in early 2023.

The transaction should be completed in the first quarter of 2025, giving LGES “immediate access to the nearly completed Lansing facility to begin the installation of equipment.” GM also says there will be no job cuts at that facility.

“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. It will be years before some of our competitors approach this level of performance,” says Paul Jacobson, GM executive vice president and CFO. “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.” 

Ultium Cells currently produces pouch-type cells. While Jacobson believes that GM has “the right cell,” the carmaker is looking at diversifying form factors. It has extended its technology partnership with LG Energy Solution to include prismatic cells, adding that it “expects the prismatic cell technology developed under the agreement to power future GM electric vehicles.”

Prismatic cells are flatter and allow for more space-efficient packaging in battery modules, in turn reducing an EVs weight and increasing its range. LG Energy Solution already has experience with the format, while GM wants “to diversify its supply chain, leveraging multiple chemistries and form factors.”

“We’re focused on optimising our battery technology by developing the right battery chemistries and form factors to improve EV performance, enhance safety, and reduce costs,” explains Kurt Kelty, GM vice president of battery cell and pack. “By extending our partnership with LG Energy Solution, we’re taking an important step toward these goals.” 

“LG Energy Solution is proud to be expanding its relationship with one of its strongest partners. Together with GM, we’ve already made tremendous progress,” adds Wonjoon Suh, executive vice president and head of the company’s Advanced Automotive Battery division. “We look forward to deepening our collaboration to drive the right chemistry and battery combinations for continued growth in the EV market.”

Update 08 May 2025

LG Energy Solution has completed the announced acquisition of General Motors’ stake in the Ultium Cells LLC 3 battery cell factory in Lansing, Michigan, and has assumed sole ownership of the factory. Following rumours in the summer of 2024, the takeover was officially announced at the beginning of December last year – see above.

With the takeover now complete, Lansing is the third US battery factory owned by LGES – or will be. Production is not yet underway, as the plant is still under construction, but the work is said to be 98 per cent complete, and only the final systems are still being installed. After the two partners had not commented on the purchase price in the winter, there is now at least a rough statement. Korean media have estimated that the current value of the plant is 2.14 billion dollars. “LG said the cost of acquiring GM’s stake was about half that amount,” the Korea Herald wrote. The advanced stage of work is one of the reasons why LGES is taking over the plant – stopping the work in Lansing and building a new plant of its own elsewhere would be significantly more expensive.

LGES is sticking to its plans for North America: “The acquisition of the Lansing plant is more than just securing a local production site. It is a strategic move to enhance production efficiency and proactively strengthen our capacity in North America,” a representative of LG Energy Solution said.

gm.com (Michigan), gm.com, lgcorp.com (prismatic cells), koreaherald.com, chosun.com (both update)