LG Energy Solution has acquired General Motors’ stake in their joint Ultium Cells facility in Lansing, Michigan for 3 trillion won ($2.1 billion), the South Korean battery maker announced Thursday.
The takeover gives LG Energy Solution full control of a second Michigan facility, with the Lansing plant expected to begin operations later this year after construction started in 2022. The company now operates eight manufacturing plants across North America, including three remaining joint ventures with Stellantis, Honda, and Hyundai.
LG Energy Solution cited maximizing efficiency and enhancing North American production capabilities as motivation for the acquisition. The move comes after the company reduced new facility investments by up to 30% compared to last year, pointing to “unprecedented market volatility and uncertainty.”
The timing follows significant policy shifts under President Trump, who has imposed a universal 10% tariff on imported goods and rolled back the $7,500 consumer tax credit for electric vehicle purchases.
GM sold its stake just one month after Trump’s November election victory, signaling growing concerns about electric vehicle market prospects in the U.S. Despite this divestment, the Detroit automaker maintains battery plant partnerships with LG Energy Solution in Ohio and Tennessee.
