South Korea’s LG Energy Solution (LGES) announced on April 2, 2025 that its US subsidiary will acquire assets from General Motors’ (GM) electric vehicle battery joint venture in Michigan for $2 billion. The transaction, set to close on May 31, may see value adjustments following due diligence.
Ultium Cells was established in December 2019 as a 50:50 joint venture between GM and LG Chem.
The Ultium Cells Michigan plant is the third US joint venture battery facility established by GM and LGES. With construction beginning in June 2022 and a total investment of $2.6 billion, the plant was originally scheduled for completion by the end of 2024. Mass production is set to commence in early 2025, achieving an annual production capacity of up to 50GWh.
This acquisition plan was initiated four months ago when GM announced a non-binding agreement to sell its stake in the Lansing-based Ultium Cells plant to LGES. And LGES confirmed in a statement that it was considering full ownership of the No. 3 Michigan Plant.
According to the plan, the deal was expected to finalize in Q1 2025, making LGES the sole owner responsible for completing construction.
Sources indicate that Toyota has agreed to transfer a $1.5 billion battery order to the revamped facility following GM’s exit from the project. Toyota confirmed the relocation of an existing LGES contract from another Michigan plant to the newly acquired site, contingent on LGES’ full takeover this spring.
As LGES stated: “This aligns with our strategic goal to optimize North American investments and meet global automakers’ demands.”
Source: WeChat Official Account—电池工业网
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