From CNBC: 2024-12-02 16:08:12

General Motors announced plans to sell its stake in a $2.6 billion electric vehicle battery cell plant in Michigan to LG Energy Solution. The sale, part of a non-binding agreement, is expected to close in the first quarter of next year. The Lansing plant was expected to be the third battery cell facility of the joint venture Ultium Cells LLC.

GM’s move to sell its stake comes as the automaker addresses slower consumer demand for electric vehicles. The sale does not impact GM’s overall ownership stake in the joint venture with LGES. GM also announced an extension of its battery technology partnership with LGES to include the development of prismatic cells, expected to reduce EV weights and costs.

GM CFO Paul Jacobson stated that the sale will help LG Energy Solution meet demand and make GM more efficient in capital utilization. The South Korean battery supplier will have immediate access to the Lansing facility for equipment installation. GM expected the plant to begin operating by the end of this year. The automaker also plans to develop prismatic cells to optimize battery technology.



Read more at CNBC: GM to sell stake in battery cell plant to LG partner for $1 billion