GM Sells Stake in Ultium Cells Battery Plant to LGES
Amidst slowing EV demand and potential shifts in clean energy incentives, General Motors (GM) is selling its share of the Ultium Cells battery plant in Lansing, Michigan, to its joint venture partner, LG Energy Solution (LGES). This move marks a significant change in GM's battery production strategy.
GM and LGES's partnership began in 2019 with the goal of mass-producing EV battery cells. Together, they invested in three plants: the Lansing facility, another in Spring Hill, Tennessee, and a third in Lordstown, Ohio. The Ohio and Tennessee plants are currently operational, powering various GM EVs like the Chevrolet Silverado EV, GMC Sierra EV, and Cadillac LYRIQ. For insights into the foldable phone market, see Foldable Phone Market Decline: Will Apple's iPhone Save the Day?
Reasons Behind the Sale
- Weakening demand for electric vehicles.
- Potential rollback of U.S. clean energy production incentives.
GM's decision follows its move away from the Ultium battery brand in favor of exploring new cell types and chemistries, including lithium iron phosphate (LFP) batteries. This shift aligns with broader industry trends, as discussed in Xiaomi Teases December Product Launches.
While the sale price remains undisclosed, GM expects to recover its initial investment. The company states that its remaining two battery plants will suffice to meet current EV demand. The company is also exploring new partnerships, as highlighted in Intel CEO Pat Gelsinger Resigns.
Future Battery Development
GM and LGES will collaborate on developing prismatic battery cells, known for their higher energy density and longer lifespan. The production location for these new cells is yet to be determined.