Lansing: LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, has announced plans to acquire General Motors Co.'s entire stake in their joint venture battery plant in Michigan for 3 trillion won (US$2.04 billion).
According to Yonhap News Agency, the acquisition of the Ultium Cells JV 3 plant in Lansing, Michigan, is part of LGES's strategy to minimize the burden of new investments in facilities while efficiently operating its U.S. plants. The two companies have been collaborating on the 50:50 joint venture plant in Michigan, with the goal of commencing operations within the year.
LGES has stated that there is no need for fresh funds to finance the acquisition since the cost was already included in the annual capital expenditure plan announced earlier this year. The battery maker had previously announced a reduction in facility investments by 20 to 30 percent for the year, compared to 13 trillion won in 2023.
In December, GM revealed its intention to sell its stake in the Lansing plant to LGES as part of its strategy to adjust its electric vehicle (EV) plans amid a slowdown in EV sales. The Ultium Cells LLC joint venture between LGES and GM currently operates its No. 1 plant in Ohio and No. 2 plant in Tennessee.