LG Energy to buy GM's stake in Michigan battery plant for $2 billion

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LG Energy to buy GM's stake in Michigan battery plant for $2 billion

Published: 01 Apr. 2025, 18:14

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Ultium Cells' third plant in Michigan. Ultium Cells is a 50:50 joint battery venture between LG Energy Solution and General Motors. [LG ENERGY SOLUTION]

LG Energy Solution will purchase General Motors' entire stake in their joint battery plant in Michigan for $2.08 billion in an apparent move to cover supply for Toyota Motor.

The planned acquisition of the Ultium Cells No. 3 plant in Lansing, Michigan, aims to minimize the burden of fresh investments in facilities and to "effectively" operate its U.S. plants, the company said in a regulatory filing. Ultium Cells is a 50:50 joint venture between LG Energy and General Motors and currently runs two factories in Ohio and Tennessee.

The deal will be concluded by May 31.

"The company doesn't need fresh funds to finance the acquisition as the acquisition money was already factored in the annual capital expenditure plan announced early this year," LG Energy Solution said.

LG Energy will likely produce batteries for Toyota Motor at the Michigan factory. The duo in 2023 inked a 10-year supply agreement to supply 20 gigawatt-hours of NCMA — nickel, cobalt, manganese and aluminum-based — battery modules per year, which is enough to manufacture around 200,000 high-performance electric vehicles.

Earlier this year, LG Energy Solution said it would reduce its facility investments by 20 to 30 percent for the year compared to 13 trillion won ($8.8 billion) in 2023.

In December, GM announced its plan to sell its stake in the Lansing plant to LG Energy Solution as it adjusts its EV plans amid a slowdown in EV sales.

BY SARAH CHEA, YONHAP [[email protected]]