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.” 

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.