Click to enlarge.
General Motors (NYSE: GM) said today that it has reached a non-binding agreement to sell its stake in the nearly completed Ultium Cells LLC battery cell plant in Lansing, Michigan to its joint venture partner LG Energy Solution.* The transaction is expected to close in the 2025 first quarter, subject to customary closing conditions.
“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,” said Paul Jacobson, GM executive vice president and CFO. “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.”
GM said it expects to recoup its investment in the facility. The transaction does not change GM’s ownership interest in Ultium Cells LLC. GM will continue to use the Ultium Cells plants in Warren, Ohio and Spring Hill, Tennessee to meet growing 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 has created thousands of jobs in the U.S. through its plants in Ohio and Tennessee. The cells produced at these plants power GM’s latest EVs including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV, as well as the GMC HUMMER EV Pickup and SUV. Ultium Cells Lansing currently has nearly 100 employees and GM said it remains on track to meet its previously announced employment commitments.
In a related announcement. General Motors and LG Energy Solution are extending their 14-year battery technology partnership to include prismatic cell development. GM said it expects the prismatic cell technology developed under the agreement to power future GM electric vehicles, as part of the company’s strategy to diversify its supply chain, leveraging multiple chemistries and form factors. GM will continue to leverage the Ultium Cells plants in Warren, Ohio and Spring Hill, Tennessee, which produce pouch battery cells, to meet growing demand for its electric vehicles.
Prismatic cells have 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.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
GM to Sell Lansing Battery Plant to LG Energy Solution
Click to enlarge.
General Motors (NYSE: GM) said today that it has reached a non-binding agreement to sell its stake in the nearly completed Ultium Cells LLC battery cell plant in Lansing, Michigan to its joint venture partner LG Energy Solution.* The transaction is expected to close in the 2025 first quarter, subject to customary closing conditions.
“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,” said Paul Jacobson, GM executive vice president and CFO. “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.”
GM said it expects to recoup its investment in the facility. The transaction does not change GM’s ownership interest in Ultium Cells LLC. GM will continue to use the Ultium Cells plants in Warren, Ohio and Spring Hill, Tennessee to meet growing 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 has created thousands of jobs in the U.S. through its plants in Ohio and Tennessee. The cells produced at these plants power GM’s latest EVs including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV, as well as the GMC HUMMER EV Pickup and SUV. Ultium Cells Lansing currently has nearly 100 employees and GM said it remains on track to meet its previously announced employment commitments.
In a related announcement. General Motors and LG Energy Solution are extending their 14-year battery technology partnership to include prismatic cell development. GM said it expects the prismatic cell technology developed under the agreement to power future GM electric vehicles, as part of the company’s strategy to diversify its supply chain, leveraging multiple chemistries and form factors. GM will continue to leverage the Ultium Cells plants in Warren, Ohio and Spring Hill, Tennessee, which produce pouch battery cells, to meet growing demand for its electric vehicles.
Prismatic cells have 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.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.