GM to Sell Stake in Ultium Lansing Plant to LG Energy Solution

DETROIT – General Motors said Monday it plans to sell its stake in Ultium Cells LLC’s $2.6 billion battery cell manufacturing plant in Lansing, Mich., to its joint venture partner LG Energy Solution.

The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, the automaker said.

GM expects to recoup its investment in the facility, and the transaction does not change GM’s ownership interest in Ultium Cells LLC, a joint venture with LG Energy. The Lansing facility is nearly finished, GM said.

GM will continue to leverage the Ultium Cells plants in Lordstown, Ohio, and Spring Hill, Tenn., to meet demand for its electric vehicles. LG Energy Solution will have immediate access to the nearly completed Lansing facility to begin the installation of equipment. 

  Ultium Cells Lansing currently has almost 100 employees and remains on track to meet its previously announced employment commitments, GM said.

“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,” Paul Jacobson, GM executive vice president and CFO, said in a statement. “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 commissioned its Lordstown battery cell plant two years ago and employs approximately 2,200 workers. A sister plant in Spring Hill opened earlier this year.

In a separate announcement, GM said it was extending its 14-year battery technology partnership with LG Energy to include the development of prismatic cells.

The automaker said it expects the prismatic cell technology to power future GM electric vehicles as part of the company’s strategy to diversify its supply chain.

Prismatic cells are a flat, rectangular shape with a rigid enclosure, which allows for space-efficient packaging within battery modules and packs. That approach can reduce EV weight and cost, while simplifying manufacturing by reducing the number of modules and mechanical components. LG Energy Solution has both experience with prismatic cell production and an extensive patent portfolio on battery design and manufacturing technologies, including packaging. 

Ultium Cells’ plants in Lordstown and Spring Hill produce pouch battery cells, GM noted.

“Together with LG Energy Solution, we’ve built Ultium Cells into one of the largest battery cell manufacturers in North America, creating thousands of advanced technology jobs in the U.S. and powering our diverse EV portfolio,” said Kurt Kelty, GM vice president of battery cell and pack. “We’re focused on optimizing our battery technology by developing the right battery chemistries and form factors to improve EV performance, enhance safety and reduce costs. By extending our partnership with LG Energy Solution, we’re taking an important step toward these goals.”

Pictured at top: The Ultium Cells battery-cell manufacturing plant in Lansing, Mich. (Ultium Cells)

Published by The Business Journal, Youngstown, Ohio.