GM to Sell Lansing Battery Plant Stake to LG Energy Solution
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General Motors (GM, Financials) said it has a preliminary deal in place to sell LG Energy Solution its interest in the almost finished Ultium Cells LLC battery factory located in Lansing, Michigan; GM stock is down 1.7% at the time of writing.
The manufacturer said that the deal would help it to recoup its investment in the Lansing plant, which is still on course to reach previously stated employment projections. With regard to the Ultium Cells LLC joint venture, which includes facilities in Warren, Ohio, and Spring Hill, Tennessee, General Motors emphasized that the transaction would not have any impact on the company's entire ownership stake in the establishment. These facilities will keep helping GM with its needs for electric car manufacturing.
GM claims LG Energy Solution will get instant access to the Lansing plant after the transaction in order to start equipment installation. Currently employing about 100 people, the plant is almost operational ready.
General Motors said that this action fits with their larger plan to satisfy growing EV demand while preserving effective manufacturing capacity. Several GM EV vehicles, including the Chevrolet Silverado EV, GMC Sierra EV, and Cadillac LYRIQ, make use of the battery cells created by the Ultium Cells joint venture.
Through its activities in Ohio and Tennessee, where identical facilities are already operational, the business said that the Ultium Cells cooperation helps to create jobs. GM underlined again its emphasis on building electric cars locally and working with LG Energy Solution to effectively handle manufacturing capacity requirements.
Expected to conclude in the first quarter of 2025, the agreement is subject to usual regulatory clearances and other conditions.
This article first appeared on GuruFocus.