Written by Collins Eshiet | Edited by Cláudio Afonso
General Motors is preparing to sell its stake in the Ultium Cells battery plant, a joint venture with South Korea’s LG Energy Solution, for around $1bn. The plant, first announced in 2020, represents a $2.6 billion investment between GM and LG Energy Solution.
The Detroit automaker also announced on Monday an extension of its 14-year battery technology partnership to include the development of prismatic cells.
GM said in a statement that the JV “has created thousands of jobs in the U.S. through its plants in Ohio and Tennessee” adding that its latest EV models are using the battery cells produced at these plants.
Construction, which began in 2023, is nearing completion, with battery cell production anticipated to commence by the end of the year.
According to sources, GM’s decision to divest its stake comes amid lower-than-expected demand for electric vehicles in the U.S. market. The company has also cited plans to adjust EV production levels. Uncertainty over federal incentives for manufacturing and purchasing electric vehicles under the current U.S. administration is another factor contributing to the decision.
GM’s Chief Financial Officer Paul Jacobson described the planned sale as mutually beneficial for both the company and LG Energy Solution but did not provide additional details.
Last month, the Detroit carmaker announced it would lay off nearly 1,000 workers worldwide, most of them in the United States. The company informed employees of its third workforce reduction since August, following layoffs of over 1,000 employees in its software department and approximately 1,700 workers in September at a manufacturing plant in Kansas.
Written by Collins Eshiet | Edited by Cláudio Afonso
