South Korean electric vehicle (EV) battery manufacturer LG Energy Solution Ltd (LGES) confirmed this week that it has agreed to acquire General Motors’ (GM) stake in one of their joint venture plants in the US for KRW3trn (US$2.05bn).
The two companies have a 50:50 joint venture in the US called Ultium Cells LLC, which has three battery cell manufacturing plants in the country – in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan. GM had previously announced, in December 2024, that it planned to sell its stake in the Lansing facility to LGES after reviewing its battery cell requirements following slower-than-expected growth in battery electric vehicle (BEV) demand in North America last year.
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LGES has agreed to take full control of the Lansing plant, which was scheduled to become operational this year, saying the decision will help it optimize its investment strategy in the region. The company pointed out that it “does not need fresh funds to finance the acquisition, as the acquisition money was already factored in the annual capital expenditure plan announced earlier this year.”
As well as Ultitum Cells, LGES has EV battery cell manufacturing joint ventures in the US with Honda and Hyundai, and has supply agreements with Ford and other automakers in the region. The company also has a stand-alone battery cell manufacturing plant in the US state of Michigan, and one under construction in Arizona.
Earlier this year, LGES said it will reduce its facilities investments by up to 30% this year, compared with KRW13trn in 2023.
