Electric Vehicle Batteries | GM Sells Stake in Lansing Battery Plant to Joint Venture Partner LG Energy Solution, Plans to Collaborate on Prismatic Battery Development

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Electric Vehicle Batteries | GM Sells Stake in Lansing Battery Plant to Joint Venture Partner LG Energy Solution, Plans to Collaborate on Prismatic Battery Development

Date：2024-12-03

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Keyword tags： LiB EV North Amercia GM

General Motors (NYSE: GM) announced on December 2nd that it has reached a non-binding agreement to sell its stake in the nearly completed Ultium Cells LLC battery plant in Lansing, Michigan, to its joint venture partner LG Energy Solution.

The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions. LG Energy Solution will then own the plant outright, and the batteries produced may be supplied to third-party automotive companies.

However, GM will continue to maintain its joint venture with LGES at the Ultium Cells battery cell plants in Warren, Ohio, and Spring Hill, Tennessee, to meet the growing demand for batteries for its electric vehicles. Additionally, GM remains committed to constructing another battery plant in New Carlisle, Indiana, in partnership with Samsung SDI. This means GM will still have three operational battery plants in the United States.

The Ultium Cells plants in Ohio and Tennessee employ thousands of workers and power GM's latest electric vehicles, including seven electric models of the Chevrolet Silverado EV, GMC Sierra EV, Cadillac LYRIQ, Chevrolet Blazer EV, Chevrolet Equinox EV, and the GMC HUMMER EV Pickup and SUV.

GM also hopes to recoup its $1 billion investment in the Lansing battery plant, which is nearing completion. LG Energy Solution will immediately gain access to the nearly finished Lansing facility to begin equipment installation. The plant currently employs nearly 100 workers, with a previous commitment to hire 1,700 workers upon operation.

"We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital-efficient manner," said Paul Jacobson, GM's Chief Financial Officer, in a statement.

Furthermore, GM will expand its battery technology cooperation with LG Energy Solution to include the development of prismatic batteries.

Developing prismatic battery technology is part of GM's strategy to diversify its supply chain with multiple chemistries and form factors. Prismatic batteries can save space, reduce weight, lower costs, and simplify the manufacturing by reducing the number of modules and mechanical components. GM hopes to optimize driving range, electric vehicle performance, and charging speed with prismatic batteries to enhance the driving experience. However, the Ultium Cells plants in Warren, Ohio, and Spring Hill, Tennessee, will continue to produce pouch cells.

As GM gradually transitions to electrification, its Buick, Cadillac, Chevrolet, and GMC brands will offer a broad range of fuel and electric vehicle models. According to The New York Times, since GM hired Tesla's former executive Kurt Kelty as Vice President of Batteries in February, GM has been reevaluating its attitude towards electric vehicle batteries. Kelty has stated that GM will adopt a variety of battery types, tailoring batteries for different models and price ranges. In September, media released that GM plans to purchase CATL's EV Battery technology through the Japanese company TDK to build a battery plant in the United States.

Statistics show that in the first nine months of this year, US electric vehicle sales reached approximately 936,000 units, a year-on-year increase of 7.2%, significantly slower than the 47% growth rate of the same period last year. However, the market expects that the total annual sales of electric vehicles in the United States may still exceed the record of 1.19 million set last year.

President-elect Donald Trump and Republicans in Congress may cancel or reduce battery manufacturing subsidies next year, forcing automakers and battery producers to reassess whether they can expect a return on their investments.

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