According to media reports, on April 1, South Korean battery manufacturer LG Energy Solution announced that its U.S. subsidiary would invest $2 billion to acquire all of General Motors' assets in their jointly owned battery plant in Michigan.
In an official statement, LG Energy Solution said the transaction is expected to close by May 31. The final amount may change following due diligence and could be less than $2 billion. The company also noted that no new funding is required for the acquisition, as the capital has already been allocated under its annual expenditure plan announced earlier this year.
The acquisition concerns the third Ultium Cells joint venture plant, located in Lansing, Michigan, originally established as a 50:50 partnership between LG Energy Solution and General Motors. According to the latest updates, construction of the main facility is nearing completion, and the installation and commissioning of production line equipment are progressing as planned. Both LG and GM previously aimed to begin operations at the plant within this year.
Through this acquisition, LG Energy Solution intends to minimize the investment burden associated with the new facility and to operate the plant independently. This move will allow LG to supply batteries to customers beyond GM. Toyota has already announced plans to shift its battery orders from LG Energy Solution to production at this facility.
Furthermore, if necessary, LG Energy Solution may add new production lines for energy storage systems (ESS) at the plant. The company previously indicated it would manufacture ESS products at its facilities in Holland, Michigan, and Wrocław, Poland.
From GM's perspective, the decision to sell its stake in the joint venture battery plant is not unexpected. During the Trump administration, uncertainties regarding the future of EV battery production and consumer tax credits led GM to scale back its electrification strategy. In December 2024, GM announced plans to divest its entire equity in the Lansing plant.
LG Energy Solution and General Motors also operate two other joint venture battery plants in the United States, located in Ohio and Tennessee.
