General Motors (GM) will sell its stake in the automotive battery plant being completed in the state of Michigan to LG Energy Solution, the vehicle manufacturer announced this Monday.
Although GM did not detail the value of the operation, it did indicate that it hopes to recover its investment in the plant, which is estimated at around $1 billion.
The plant is being completed in the town of Lansing after a global investment of 2.6 billion dollars.
GM said in a statement that it expects to close the operation in the first quarter of 2025.
GM and LG Energy Solution operate the Ultium Cells joint venture, which has two battery plants in the United States: one in Warren, Ohio, and another in Spring Hill, Tennessee.
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These plants produce batteries for GM electric vehicles, such as the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Lyriq, Chevrolet Equinox EV, and GMC Hummer.
The Warren plant was intended to be the third of Ultium Cells. GM indicated that the sale of Warren does not alter its stake in Ultium Cells.
The announcement comes after GM in August finalized an agreement with Samsung SDI to establish a joint venture that will produce batteries in Indiana. The agreement with LG’s rival Energy Solution represents a total investment of $3.7 billion.
GM Executive Vice President and Chief Financial Officer Paul Jacobson stressed Monday that the automaker believes it has “the appropriate manufacturing and battery production capabilities” to develop the electric vehicle market with “capital efficiency.” ”.
“Our profitability is improving rapidly thanks in part to our strategic decision to produce batteries in the US with LG Energy Solution. “It will take some of our competitors years to achieve this level of performance,” he added.
With information from EFE
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