LG Energy Solution Ltd. (LGES), South Korea’s top battery manufacturer, announced Thursday that it has purchased General Motors Co.’s entire stake in their joint battery plant in Michigan. The deal is valued at 3 trillion won, or about US$2.04 billion.
The plant, known as Ultium Cells JV No. 3, is located in Lansing, Michigan. LGES described the acquisition as a strategic move to reduce the financial pressure of building new facilities and to boost the efficiency of its U.S. operations.
The company emphasized that local production has become increasingly important due to the growing uncertainty caused by changing U.S. trade policies.
Construction of the Michigan plant began in 2022 as a 50:50 joint venture between LGES and GM. The goal is to have the facility up and running by the end of this year.
Earlier in 2024, LGES announced plans to reduce its spending on new facilities by 20 to 30 percent, compared to the 13 trillion won it spent in 2023.
In December, GM said it would sell its share of the Lansing plant to LGES as it adjusted its electric vehicle (EV) strategy in response to slower-than-expected sales.
Ultium Cells LLC, the joint venture between LGES and GM, already operates two battery plants—one in Ohio and another in Tennessee.
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