LG Energy Solution announced Thursday that it has completed its acquisition of General Motors’ stake in a joint venture battery plant in Michigan, expanding its production capacity to serve a wider range of automakers in North America.
The electric vehicle battery plant has been under construction since 2022. It was initially intended to become the third battery manufacturing facility under Ultium Cells — a 50:50 joint venture between LG Energy Solution and GM — based on a joint investment of $2.6 billion.
Following the acquisition, LG Energy Solution took over ownership of the Lansing plant from Ultium Cells on Wednesday, making it the company’s third fully owned plant in North America.
As the facility remains under construction, its current value is estimated at $2.14 billion. LG said the cost of acquiring GM’s stake was about half that amount.
“The acquisition of the Lansing plant is more than just securing a local production site. It is a strategic move to enhance production efficiency and proactively strengthen our capacity in North America,” an LG Energy Solution official said.
The company noted that acquiring the 950,000-square-meter site allows it to avoid the rising costs of building a new facility, while also meeting growing demand in the regional market.
As of now, construction of the plant is reported to be 98 percent complete, with installation of production equipment underway.
While the plant was initially intended to supply batteries for GM’s locally produced electric vehicles, Bloomberg reported in February that Toyota agreed to source its EV batteries from the facility.
“We aim to continue improving our production competitiveness and respond flexibly to market developments,” the LG official added.
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