South Korea’s LG Energy Solution has announced that its U.S. subsidiary will acquire the assets of its Michigan electric vehicle (EV) battery venture with General Motors (GM) for $2 billion. The transaction is expected to close on May 31, though the final value may change following due diligence, according to a regulatory filing by LG Energy Solution.
GM has been scaling back its EV expansion plans amid market uncertainty and potential policy shifts under the Trump administration. In December 2023, GM confirmed it would sell its stake in the Michigan battery plant, marking a significant shift in its EV strategy.
Despite this development, LG Energy Solution and GM continue their collaboration, with two joint venture battery plants in operation in Ohio and Tennessee. LG Energy Solution stated that the transaction costs are part of its previously announced capital spending plan, and the final expenditure could be lower than $2 billion.
In a related development, Toyota Motor has decided to transfer its order for the company to the Lansing, Michigan plant, which GM is exiting. This move indicates continued demand for LG’s battery technology despite GM’s strategic changes.
The U.S. EV battery sector remains in flux, with automakers adjusting investment strategies in response to shifting regulations, evolving consumer demand, and global competition in battery production.
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