Thursday, 24 April 2025
26.8 C
Singapore
29.9 C
Thailand
19.5 C
Indonesia
28.8 C
Philippines

GM sells stake in Michigan EV battery plant to LG Energy Solutions

GM sold its stake in an EV battery plant in Lansing to LG Energy Solutions, recouping US$1 billion while advancing new battery technology.

General Motors (GM) has announced that it is selling its share in an electric vehicle (EV) battery plant to LG Energy Solutions, its South Korean partner. The facility in Lansing, Michigan, is nearly complete and was being developed by Ultium Cells LLC, a joint venture between GM and LG.

Under the terms of the non-binding agreement revealed on Monday, LG will take full ownership of the plant and manage its operations. Once complete, the company plans to sell batteries produced at the facility to other manufacturers. According to the statement, GM will recover its US$1 billion investment in the project.

A shift in ownership

The Lansing plant is the latest in a series of battery factories established by GM and LG as they ramp up their EV production. The companies already operate joint battery plants in Warren, Ohio, and Spring Hill, Tennessee, producing batteries for GM’s Cadillac Lyriq and Chevrolet Equinox EVs.

Additionally, GM is working with Samsung SDI to develop another battery facility in New Carlisle, Indiana. Following the Lansing sale, GM’s US-owned battery plants will total three.

Paul Jacobson, GM’s chief financial officer, expressed optimism about the move, saying, “We believe we have the right cell and manufacturing capabilities to grow with the EV market in a capital-efficient manner. When completed, this transaction will also help LG Energy Solution meet demand by leveraging nearly ready capacity to come online, making GM even more efficient.”

EV profitability challenges

GM remains focused on making its EV business profitable, partly by mass-producing batteries domestically. By simplifying supply chains and capitalising on federal incentives introduced by the Biden administration, GM aims to compete with traditional gas-powered vehicles.

However, potential changes in government policy could disrupt these efforts. If re-elected, former President Donald Trump has pledged to eliminate EV subsidies, a move that could significantly impact GM’s long-term goals for its EV segment.

Despite the challenges, GM is advancing its plans. The automaker and LG announced the development of rectangular “prismatic” battery cells. These cells are designed to hold more energy than cylindrical cells, are more straightforward to manufacture, and are expected to improve overall production efficiency.

As the EV market grows, GM and LG are adapting to meet increasing demand while navigating the evolving industry landscape.

Hot this week

ChatGPT joins forces with The Washington Post in new content partnership

OpenAI partners with The Washington Post to bring trusted news summaries to ChatGPT, offering better access to reliable information.

AMD optimizes models for faster generative AI performance with Amuse 3.0

AMD announces optimised models for faster AI performance with Amuse 3.0, featuring enhanced photo filters, video diffusion, and more.

Taobao joins DHgate in Top 5 as US shoppers turn to Chinese apps

Chinese shopping apps DHgate and Taobao hit the US App Store’s Top 5 as shoppers seek luxury alternatives at lower prices via viral TikTok trends.

OpenAI looked at Cursor before moving to buy Windsurf for US$3B

OpenAI tried to buy Cursor creator Anysphere before turning to Windsurf for US$3B, showing its urgency to lead AI code generation.

Enterprises accelerate adoption of AI agents despite concerns over data privacy and fairness

Cloudera survey finds 96% of global enterprises plan to expand AI agents, with Singapore leading adoption but facing fairness concerns.

POCO launches entry-level C71 smartphone in Singapore with premium features

POCO launches the budget-friendly C71 smartphone in Singapore, offering premium design, enhanced cameras, and smooth performance at S$109.

NVIDIA uses AI to address climate, wildlife and disaster risks

NVIDIA’s AI tools support climate action, wildlife monitoring, and disaster risk mitigation, with uses spanning sea, land, sky and space.

Netflix raises subscription prices in Singapore again

Netflix again raises subscription prices in Singapore, with new rates for all plans and extra member slots.

GameMax unveils Blade Concept ATX case with bold design and powerful features

GameMax launches the Blade Concept ATX case, which features a striking blade design, RGB lighting, and support for high-end liquid-cooled PC builds.

Related Articles

Popular Categories