LG Energy Solution is in discussions to acquire Ultium Cells’ third battery plant in Lansing, Michigan, from its joint venture partner General Motors. (Image courtesy of LG Energy Solution)
SEOUL, Dec. 4 (Korea Bizwire) – As concerns mount over a prolonged drop in electric vehicle demand and potential impacts of Donald Trump’s potential return to the White House, South Korea’s battery manufacturers are adapting their strategies amid growing industry turbulence marked by EV plant closures and bankruptcies worldwide.
The country’s three major battery makers are pursuing various survival strategies in the U.S. market, including factory acquisitions, production volume securing, and government loan support, industry sources said on December 3.
LG Energy Solution is in discussions to acquire Ultium Cells’ third battery plant in Lansing, Michigan, from its joint venture partner General Motors. While specific plans for the facility remain undisclosed, sources familiar with the matter suggest the company may use it as a key North American production hub and manufacture some of its independently secured orders there.
The acquisition represents a strategic win for LG Energy Solution, allowing the company to secure a standalone factory with relatively modest time and financial investment.
According to GM, construction of the third plant is largely complete, reducing both completion costs and time compared to building a new facility. Operating it independently would enable LG to produce batteries for various customers beyond GM while retaining 100% of the profits.
Meanwhile, Samsung SDI has secured a $7.54 billion loan from the U.S. government to fund the construction and operation of two StarPlus Energy plants, its joint venture with Stellantis in Kokomo, Indiana.
The facilities will have production capacities of 33GWh and 34GWh respectively, enabling the company to supply batteries for approximately 670,000 vehicles annually. The first plant is scheduled to begin cell production this month, with the second targeted for operation in 2027.
Industry observers view the U.S. government’s loan support as recognition of Korean battery makers’ aggressive expansion into the North American market through joint ventures.
These arrangements allow companies to benefit from both the Advanced Manufacturing Production Credit under the Inflation Reduction Act and U.S. government support aimed at boosting American competitiveness in the EV industry.
The U.S. Department of Energy emphasized that these projects would boost North American battery manufacturing capacity while reducing dependence on “hostile nations” like China.
In a separate development highlighting the industry’s evolving dynamics, Hyundai Motor recently approved the sale of partial priority supply rights for SK On batteries to its affiliate Kia for 115.1 billion won.
The rights originated from Hyundai’s earlier investment in dedicated production lines at SK On’s battery facilities, including a 35GWh plant under construction in Bartow County, Georgia.
“The transfer of supply rights appears to be a flexible response to Kia’s expanding EV lineup,” an industry insider noted, adding that “SK On also benefits by securing guaranteed volume commitments from customers.”
Kevin Lee (kevinlee@koreabizwire.com)
