GM introduced plans to promote its stake within the practically accomplished Lansing, Michigan, EV battery plant to three way partnership companion LG Vitality Answer. The Lansing facility is one in every of 4 deliberate GM vegetation to open within the US.
GM sells off its stake in Michigan EV battery plant
The Lansing plant was one in every of three battery vegetation GM introduced in January 2022 by means of its three way partnership with LG, Ultium Cells.
GM’s first plant, in Warren, Ohio, started producing batteries for the GMC Hummer and Cadillac Lyriq in September 2022. Earlier this yr, the Ultium Cells plant in Spring Hill, TN, started transport battery cells to GM for its new EV fashions, such because the Chevy Blazer, Equinox, and Silverado EVs.
The third, a 2.8 million sq ft facility in Lansing, Michigan, was scheduled to open later this yr. Though it’s practically full, GM is promoting off its funding.
GM introduced on Monday that it had reached a non-binding settlement to promote its stake within the Lansing EV battery plant.
In accordance with CFO Paul Jacobson, GM believes it has “the best cell and manufacturing capabilities in place to develop within the EV market in a capital environment friendly method.”
Jacobson added, “Our EV profitability is quickly bettering thanks partially to our strategic determination to construct battery cells within the US with LG Vitality Answer.” The transaction is anticipated to shut within the first quarter of 2025.
LG could have speedy entry to the power and its practically 100 workers. GM stated the plant stays on monitor to fulfill its beforehand introduced employment commitments.
The sale doesn’t influence GM’s possession within the Ultium Cells three way partnership or GM’s fourth deliberate EV battery plant with Samsung SDI.
In a separate press launch Monday, GM and LG introduced they’re extending their 14-year battery partnership to incorporate prismatic cell improvement. The corporate stated with a extra environment friendly flat design, prismatic cells can scale back the burden and price of EVs with space-efficient packaging.
Kurt Kelty, GM vp of battery cell and packs, stated, “We’re targeted on optimizing our battery expertise by growing the best battery chemistries and kind components to enhance EV efficiency, improve security, and scale back prices.” GM is taking an “vital step” towards these targets by extending its partnership with LG.
