General Motors (GM, Financial) and LG Energy Solution formed a 50-50 joint venture, Ultium Cells, five years ago to produce batteries for electric vehicles. However, slowing growth in North America's EV market and potential policy changes have impacted their plans. GM announced it will sell its stake in the nearly completed Ultium Cells battery plant in Lansing, Michigan, to LG Energy, aiming to recoup $1 billion of its $2.6 billion investment. The transaction is expected to be completed in Q1 2025.
Despite challenges, GM emphasizes its growing EV profitability, partly due to its strategic battery production partnership with LG Energy. The two companies plan to expand their 14-year collaboration by developing prismatic cell technology, which could offer cost and weight advantages for future EVs.
