GM accelerates EV plans with Lansing battery plant sale to LG Energy Solution

General Motors Company (GM) is set to sell its stake in the nearly completed Lansing battery plant to its long-standing joint venture partner, LG Energy Solution. The sale of the facility, part of their joint effort to advance electric vehicle batteries, is expected to close during the first quarter of 2025, pending regulatory approvals and customary conditions.

Despite selling its investment in the Lansing battery plant, General Motors has confirmed that its ownership stake in Ultium Cells LLC remains unaffected. This strategic move enables the automaker to optimize resources at its existing battery production facilities in Ohio and Tennessee, which are pivotal in supporting EV market growth. The plant in Lansing, nearly operational and staffed with around 100 employees, will soon see equipment installation overseen by LG Energy Solution.

Electric vehicle batteries powering the future

The decision to transfer control of the Lansing battery plant aligns with General Motors’ commitment to improving operational efficiency in producing electric vehicle batteries. GM executives emphasized that this collaboration with LG Energy Solution is crucial for supporting the company’s broader EV ambitions, particularly as demand continues to rise in North America.

By concentrating production at its Ohio and Tennessee plants, General Motors intends to sustain its role as a leader in battery technology innovation. These plants produce the batteries that power popular EV models such as the Cadillac LYRIQ, Chevrolet Silverado EV, and GMC HUMMER EV. GM’s CFO has stressed that leveraging partnerships and focusing on efficient manufacturing processes are key to achieving profitability in the competitive EV space.

Innovations in battery technology

In addition to the sale, General Motors and LG Energy Solution are expanding their 14-year partnership to include the development of prismatic battery technology, a form of battery technology innovation that promises efficiency gains and cost reductions. This collaboration will enhance GM’s ability to diversify its supply chain, ensuring the production of cutting-edge electric vehicle batteries.

Prismatic battery cells are uniquely designed with a flat, rectangular shape, which offers better space utilization in battery modules. LG Energy Solution’s expertise in this field positions them as an invaluable partner for advancing battery technology innovation. GM executives highlighted that these advancements will help meet the growing demands of the EV market growth, providing drivers with better range and performance.

A collaborative future for electric vehicles

The sale of the Lansing battery plant and the extension of the partnership for battery technology innovation underscore General Motors’ commitment to sustainable growth in the EV sector. By strengthening ties with LG Energy Solution, the automaker positions itself at the forefront of the electric vehicle batteries market while ensuring its facilities are optimized for efficiency.

With these developments, GM and LG Energy Solution aim to redefine the landscape of battery technology innovation, creating solutions that cater to the rapidly evolving demands of the EV market growth. Both companies remain confident that their collaboration will continue to drive advancements that benefit both the industry and consumers.