This file photo taken May 30, 2024, shows a battery plant in Tennessee operated by the Ultium Cells LLC JV between LG Energy Solution Ltd. and General Motors Co. (Yonhap)
SEOUL, May 8 (Korea Bizwire) — LG Energy Solution Ltd. (LGES), South Korea’s leading battery maker, said Thursday it has acquired General Motors Co.’s entire stake in their joint venture (JV) battery plant in Michigan for 3 trillion won (US$2.04 billion).
The acquisition of the Ultium Cells JV No. 3 plant in Lansing, Michigan, is a “strategic decision” aimed at reducing the company’s burden of new facility investments and improving operational efficiency at its U.S. plants, LGES said in a press release.
Local production has become a “key factor in securing a competitive edge” amid rising uncertainties from shifting U.S. tariff policies, it added.
The two companies began constructing the 50:50 JV plant in Michigan in 2022, with an aim to begin operations within this year.
Earlier this year, LGES said it would cut its facility investments by 20 to 30 percent for the year compared with 13 trillion won in 2023.
In December, GM announced plans to sell its stake in the Lansing plant to LGES as it revised its electric vehicle (EV) strategy in response to slowing EV sales.
Ultium Cells LLC, the JV between LGES and GM, currently operates its first plant in Ohio and second in Tennessee.
(Yonhap)
