GM Battery Cell Plant Deal Marks $1 Billion Ownership Shift
General Motors (GM) plans to sell its stake in a $2.6 billion electric vehicle battery cell plant in Lansing, Michigan. This move signifies a $1 billion ownership shift in GM’s strategic partnership with LG Energy Solution. The transaction is part of a nonbinding agreement expected to close in the first quarter of next year.
A Major Shift at the GM Battery Cell Plant
The Lansing facility, a 2.8-million-square-foot plant, was initially planned as the third Ultium Cells LLC battery facility. It follows two operational plants in Ohio and Tennessee. GM’s decision to transfer its stake to LG Energy Solution aligns with the company’s strategy to streamline EV production amid slower-than-expected demand. The sale allows GM to recover approximately $1 billion of its initial investment, enabling more efficient capital allocation toward future projects.
The Lansing Plant’s Role in GM’s EV Strategy
The Lansing plant was announced in January 2022 as a key component of GM’s electric vehicle expansion. While the sale shifts ownership, GM retains its involvement in the broader Ultium Cells joint venture. The facility, nearing completion, employs about 100 workers and is expected to begin operations by the end of this year. This transition ensures a seamless continuation of the plant’s integration into the growing EV market.
LG Energy Solution’s New Position in Lansing
LG Energy Solution will gain full control of the Lansing plant, which provides the company with immediate access to accelerate equipment installation and production setup. This acquisition also positions LG Energy Solution to better meet the growing demand for EV batteries in the United States. GM Chief Financial Officer Paul Jacobson emphasized that the sale supports GM’s goals to efficiently grow with the EV market while leveraging LG Energy Solution’s expertise.
Expanding GM’s Battery Technologies
In a separate announcement, GM and LG Energy Solution extended their 14-year collaboration to include the development of prismatic battery cells. These advanced cells are designed to optimize space, reduce weight, and lower costs while enhancing electric vehicle performance. Unlike traditional battery designs, prismatic cells simplify manufacturing by minimizing the number of mechanical components and modules needed. This development underscores GM’s commitment to improving EV technology through innovation.

Destination Charged | MSN | GM and LG Energy Solution extended their 14-year collaboration to include the development of prismatic battery cells.
Balancing Investments With Market Realities
GM’s decision to adjust its ownership in the Lansing facility highlights its strategy to balance investments with shifting market conditions. The automaker faces uncertainties regarding federal incentives for EV manufacturing and adoption. Selling its stake allows GM to maintain financial flexibility while continuing to refine its EV technology. By focusing on capital-efficient growth, GM positions itself to compete effectively in the evolving electric vehicle market.
Looking Ahead in the EV Race
While the Lansing sale represents a change in GM’s immediate plans, it underscores the automaker’s broader commitment to the EV transition. The move allows GM to reallocate resources to critical areas, such as future battery joint ventures with Samsung SDI and the expansion of advanced battery cell technologies. With this shift, GM demonstrates its ability to adapt and innovate in a rapidly changing automotive landscape.
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