GM to sell stake in battery cell plant to joint venture partner for roughly $1 billion
Photo by Steve Fecht for Standard Motors
DETROIT — Standard Motors plans to sell its stake in a $2.6 billion electric vehicle battery cell plant in Michigan to its joint mission partner LG Energy Solution, the automaker announced Monday.
The Detroit carmaker said it expects to recoup its funding in the facility, which a provide accustomed to the plans said is anticipated to be roughly $1 billion. The sale is fragment of a non-binding agreement between the 2 corporations that’s anticipated to shut throughout the first quarter of subsequent year, GM said.
The almost accomplished, 2.8 million-square-foot plant in Lansing, Michigan, was as soon as expected to be the third battery cell facility of the joint mission, acknowledged as Ultium Cells LLC, following plant life in Ohio and Tennessee which hold already opened and are operational.
The Lansing plant was as soon as announced in January 2022, and the 2 corporations first announced their joint mission 5 years ago.
GM’s transfer comes as the automaker makes an attempt to beautiful-dimension production of electrical automobiles and confronts slower-than-expected user ask. It also comes amid uncertainty concerning federal incentives for manufacturing and procuring EVs in the U.S. below President-elect Donald Trump.
The automaker said the sale does no longer impact its general possession stake in the joint mission or its future plans for a separate joint mission plant with LGES rival Samsung SDI.
GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin on the automaker’s battery lab in Warren, Mich., where the corporations announced a brand recent $2.6-billion joint mission on Dec. 5, 2019.
GM
“We mediate we hold got the beautiful cell and manufacturing capabilities in scheme to develop with the EV market in a capital ambiance friendly formulation,” GM CFO Paul Jacobson said in a open. “When accomplished, this transaction can even inspire LG Energy Solution meet ask by leveraging skill that’s almost in a position to come lend a hand on-line and it would possibly well probably probably perchance impact GM even more ambiance friendly.”
GM said the South Korean battery provider will hold quick safe entry to to the Lansing facility to begin set up of equipment. The plant, which currently employs almost 100 other folks, was as soon as expected to begin working by the discontinuance of this year.
Change into self sustaining from the sale of its stake in the Lansing facility, GM on Monday announced it would possibly well probably probably perchance extend a 14-year battery technology partnership with LGES to encompass the enchancment of an emerging form of battery cell known as prismatic cells.
Prismatic cells are a flat, rectangular shape with a inflexible enclosure, which permits for scheme-ambiance friendly packaging inside battery modules and packs. GM said the cells are expected to diminish EV weights and costs, while simplifying manufacturing by reducing the choice of modules and mechanical formula.
“We’re piquant about optimizing our battery technology by creating the beautiful battery chemistries and possess components to toughen EV efficiency, give a rob to security, and nick again costs. By extending our partnership with LG Energy Solution, we’re taking a vital step in direction of these targets,” Kurt Kelty, GM vice president of battery cell and pack, said in a open.
GM had beforehand said it planned to expand its battery cell technologies from its flat “Ultium” pouches to encompass different kinds equivalent to prismatic cells.