By Tuba Ongun
General Motors (GM) on Monday announced plans to sell its stake in the nearly finished Ultium Cells battery plant in Lansing, Michigan, to its partner LG Energy Solution.
The agreement is still non-binding and is expected to close in the first quarter of 2025, pending standard approvals, the Detroit carmaker said in a statement.
GM said that the sale would allow it to recover its investment in the facility.
The move will not affect GM's ownership interest in Ultium Cells LLC and it will continue to leverage other plants in Warren, Ohio, and Spring Hill, Tennessee, to meet growing demand for its electric vehicles, it said.
LG Energy Solution will immediately take control of the Lansing plant and begin installing equipment.
The plant, which currently employs around 100 people, remains on track to meet its hiring goals.
Paul Jacobson, GM's executive vice president, said: "We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital-efficient manner.
“When completed, this transaction will also help LG Energy Solution meet demand by leveraging capacity that's nearly ready to come online and it will make GM even more efficient."