LG Energy Solution to acquire GM's stake in Michigan battery plant

Kim Dong-myung, left, CEO of LG Energy Solution and Mary Barra, CEO of General Motors pose for a photo after making their investment plan in building a third battery plant in Lansing, Michigan, in 2022. [LG ENERGY SOLUTION]

 
LG Energy Solution is mulling to purchase General Motors' entire stake in their third joint venture battery plant in Lansing, Michigan. 
 
The Detroit-based automaker said Tuesday it signed "a non-binding agreement to sell its stake in the plant" to LG Energy Solution, adding that the transaction is expected to close in the 2025 first quarter. 
 

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The deal is reportedly about $1 billion, according to Reuters, though the size has not been confirmed. 
 
The sell-off does not change GM's ownership stake in their two other battery plants in Ohio and Tennessee. LG Energy Solution and GM in 2019 formed Ultium Cells, a 50:50 battery joint venture, and together invested in building a total of three plants in the United States. 
 
The Michigan is scheduled to start operation next year with a total of 50 gigawatt-hours of production capacity. 

BY SARAH CHEA [chea.sarah@joongang.co.kr]