The shift to electric vehicles is reshaping the auto industry. Automakers are racing to secure the resources and technology needed to compete. But building a sustainable business in this space isn’t cheap.
General Motors knows this well, which is why the company is making moves to free up cash and streamline its operations.
This week, GM announced it is selling its share in a battery factory in Lansing, Michigan, to its partner, LG Energy Solution.
The facility, built as part of their Ultium Cells joint venture, has been under construction since 2022. It’s expected to begin operations in the coming months.
GM has invested about $1.07 billion in the plant and expects to recover the full amount through the sale.
Does Not Mean End of Partnership
For now, the factory employs 100 people, but that number is projected to grow to 1,700 as production ramps up.
Under LG’s ownership, the plant will supply batteries to another automaker, though details on which company that might be remain under wraps.
GM’s Chief Financial Officer, Paul Jacobson, called the decision a win for both companies. He pointed out that the sale would allow LG to quickly bring the facility online while enabling GM to focus on making its EV business more efficient.
“We believe we have the right capabilities to grow with the EV market in a way that makes sense for our bottom line,” Jacobson said.
The sale doesn’t mean the end of the GM-LG partnership. Far from it. On the same day, the two companies announced they are expanding their 14-year collaboration to develop new battery cells.
These next-gen cells will be lighter, cheaper, and easier to produce, helping GM cut costs across its EV lineup.
Other Ultium Cells plants will continue producing batteries for GM vehicles like the Cadillac Lyriq, Chevrolet Silverado EV, and GMC Hummer EV.
