General Motors is reshaping its battery strategy by selling its stake in a Michigan plant to LG Energy Solution while simultaneously expanding their technology partnership into prismatic cells.
The Detroit automaker plans to divest its share in the nearly completed Ultium Cells facility in Lansing to its Korean partner in early 2025. The deal lets GM recoup its investment while maintaining its stakes in joint venture plants in Ohio and Tennessee.
LG Energy will gain immediate access to the Lansing site, which employs about 100 workers. The facility will help the Korean company meet growing U.S. battery demand.
Separately, the companies announced plans to jointly develop prismatic battery cells – a new format for their 14-year partnership. This makes LG Energy the first manufacturer to produce all three major battery types.
GM’s CFO said the company’s EV profits are improving faster than competitors’, partly due to its U.S. battery production strategy. The automaker will use cells from the remaining joint venture plants for vehicles including the Chevrolet Silverado EV and Cadillac LYRIQ.
Neither company disclosed financial terms for the Michigan plant sale.
