General Motors plans to sell its stake in a Michigan electric vehicle battery plant to its joint venture partner, company officials announced.
Agreement with LG Energy Solutions
The Detroit automaker said that it reached a “non-binding agreement” with South Korean battery firm LG Energy Solution for the latter to purchase the companies’ Ultium Cells LLC facility in Lansing.
GM had reportedly invested some $1 billion in the plant, but officials indicated that they expect to recoup that amount.
Site Still Expected to Hit Hiring Goal
GM officials said that although the Lansing factory is nearly completed, the company will continue to use batteries built at the joint venture’s other plants in Ohio and Tennessee.
LG Energy Solution, meanwhile, will be able to begin equipment installations at the southern Michigan site. Nearly 100 workers have been hired at the facility so far, and the plant remains “on track” to meet its previously announced employment target of around 1,700, GM stated.
A Sluggish EV Market
The announcement comes amid more sluggish growth in the EV sector that has prompted most global automakers to curtail their electrified ambitions. GM officials said the company believes it has “the right cell and manufacturing capabilities in place” to grow with the EV market.
Deal Slated to Close Next Year
The transaction is expected to close early next year, subject to customary conditions. Additional terms of the proposed deal were not disclosed.
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