LG Energy acquires GM’s stake in battery plant JV for $2.6bn

June 2025 | DEALFRONT | MERGERS & ACQUISITIONS

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June 2025 Issue

As part of its commitment to an all-electric future, South Korea’s LG Energy Solution will acquire General Motors’ (GM’s) full stake in their joint venture battery plant – Ultium Cells Lansing 3 – for approximately $2.08bn.

The acquisition allows LG Energy to consolidate its manufacturing operations while reducing the need for fresh investments in new facilities. The company emphasised that the purchase aligns with its annual capital expenditure plan and will not require additional funding.

The Ultium Cells Lansing plant – its third battery cell manufacturing plant in the US – will use the most advanced and efficient battery cell manufacturing processes. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials.

The Ultium Cells Lansing site joins the Ultium Cells battery cell manufacturing sites being constructed in Ohio and Tennessee. When fully operational, the facility is expected to create 1700 new jobs. Site preparation on the facility is forecast to begin in the summer of 2025 with a target of early 2027 to start building battery cells.

Supplying battery cells to Orion Assembly in Michigan and other GM EV assembly plants, Ultium Cells expects the facility to have 50 gigawatt hours of battery cell capacity when running full production.

“This significant investment demonstrates our commitment to strengthen our Michigan and US manufacturing presence and grow good-paying jobs,” said Mary Barra, chair and chief executive of GM. “We will have the products, the battery cell capacity and the vehicle assembly capacity to be the EV leader by mid-decade.”

GM has been scaling back its EV plans amid uncertainty about the future of EV battery production and consumer tax credits under the Trump administration, stating in December 2024 that it would sell its stake in the plant.

“With a shared vision, GM and LG Energy Solution pioneered the EV sector by seizing new opportunities in the market well before anyone else did,” said Youngsoo Kwon, chief executive of LG Energy Solution. “Our third battery manufacturing plant, fittingly located in America’s automotive heartland, will serve as a gateway to charge thousands and later millions of EVs in the future.”

With a 30-year history in the battery business, LG Energy Solution has made consistent, large-scale investments to accumulate enough stability, credibility and manufacturing experience to invent its own cutting-edge technologies.

The company established its first research facility in the US in the early 2000s. In 2010, the company built its first US battery plant in Holland, Michigan. Through Ultium Cells, LG Energy Solution and GM will merge their advanced technologies and capabilities to help accelerate automotive electrification.

“We are extremely excited to have another home here in Lansing, Michigan,” said Kee Eun, president of Ultium Cells. “This facility will lead us into a new era of manufacturing and sustainability as we push toward a zero-emissions future. Our job is to ensure flawless execution through close collaboration with our partners and the State of Michigan.”

The transaction is scheduled to be completed by the end of May 2025.

“The support of the State of Michigan, the City of Lansing and Delta Township played an important factor in making this investment in Lansing possible,” concluded Ms Barra. “This type of support will be critical moving forward as we continue to take steps to transition our manufacturing footprint to support EV production.”

Fraser Tennant