General Motors announced the sale of its stake in a nearly completed battery factory in Lansing, Michigan, to partner LG Energy Solution. The decision reduces GM’s U.S. battery plant operations from four to three. LG will complete the facility and sell its battery output to another customer, with GM recouping its $1 billion investment in the project.
According to the New York Times, the automaker and LG jointly produce batteries at plants in Warren, Ohio, and Spring Hill, Tennessee, powering vehicles like the Cadillac Lyriq and Chevrolet Equinox. GM is also partnering with Samsung SDI to construct a separate battery plant in New Carlisle, Indiana, and reaffirmed its commitment to that venture.
Despite growing electric vehicle sales, several automakers are adjusting their investment plans. “We believe we have the right cell and manufacturing capabilities in place to grow with the E.V. market in a capital-efficient manner,” said GM CFO Paul Jacobson.
In tandem with the announcement, GM revealed plans to co-develop prismatic batteries with LG, complementing their existing pouch battery production. Prismatic batteries, which feature rigid casings, are lighter and simpler to manufacture. GM’s vice president for batteries, Kurt Kelty, emphasized the company’s focus on optimizing battery technology to improve performance, safety, and cost-efficiency.
GM, the second-largest EV seller in the U.S. after Tesla, has claimed its domestic battery production lowers costs and benefits from federal subsidies. However, future subsidy changes under the next administration could prompt further industry reassessments.
