General Motors is selling its stake in an electric vehicle battery facility to its partner LG Energy Solutions, the automaker announced Monday.
The nearly completed factory in Lansing, Michigan, was being developed by Ultium Cells LLC, a joint venture between GM and South Korea’s LG. Following the non-binding agreement, LG will become the sole owner and complete the plant. The company will then sell the batteries to other customers. GM said it would get back the $1 billion it invested in the factory.
GM and LG already jointly develop batteries at factories in Warren, Ohio, and Spring Hill, Tennessee, where they produce batteries for the Cadillac Lyriq and Chevy Equinox EVs. The automaker also has a battery factory in joint ownership with Samsung SDI in New Carlisle, Indiana. After today’s announcement, the number of battery factories in the US owned by GM will drop to three.
GM says it is close to making a profit on its EV business
GM says it is close to making a profit on its EV business, in part because it can mass produce batteries domestically, simplifying its supply chains and giving it access to financial incentives from the Biden administration. But Donald Trump has vowed to cancel out EV subsidies once he assumes office, which could derail GM and other automaker’s efforts to develop an EV business that’s as profitable as the sale of gas cars.
“We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital efficient manner,” Paul Jacobson, GM’s chief financial officer, said in a statement. “When completed, this transaction will also help LG Energy Solution meet demand by leveraging capacity that’s nearly ready to come online and it will make GM even more efficient.”
Original Author: Andrew J. Hawkins | Source: The Verge
