GM sells stake in EV battery plant to companion LG Energy Solutions

The almost accomplished manufacturing unit in Lansing, Michigan, was being developed by Ultium Cells LLC, a three way partnership between GM and South Korea’s LG. Following the non-binding settlement, LG will turn into the only real proprietor and full the plant. The firm will then promote the batteries to different prospects. GM mentioned it will get again the $1 billion it invested within the manufacturing unit.

GM and LG already collectively develop batteries at factories in Warren, Ohio, and Spring Hill, Tennessee, the place they produce batteries for the Cadillac Lyriq and Chevy Equinox EVs. The automaker additionally has a battery manufacturing unit in joint possession with Samsung SDI in New Carlisle, Indiana. After immediately’s announcement, the variety of battery factories within the US owned by GM will drop to 3.

“We consider now we have the precise cell and manufacturing capabilities in place to develop with the EV market in a capital environment friendly method,” Paul Jacobson, GM’s chief monetary officer, mentioned in a press release. “When accomplished, this transaction can even assist LG Energy Solution meet demand by leveraging capability that’s almost prepared to return on-line and it’ll make GM much more environment friendly.” 

GM and LG additionally introduced plans to develop rectangular “prismatic” battery cells that may maintain extra power capability than cylindrical cells. Prismatic cells are packed flat in inflexible instances and are usually regarded as much less advanced to fabricate.