LG Energy to acquire GM's stake in Michigan battery plant

SEOUL, April 1 (Yonhap) -- LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, said Tuesday it will acquire General Motors Co.'s entire stake in their joint venture (JV) battery plant in Michigan for 3 trillion won (US$2.04 billion).

The planned acquisition of the Ultium Cells JV 3 plant in Lansing, Michigan, is aimed at minimizing the burden of fresh investments in facilities and "effectively" operating its U.S. plants, the company said in a text message.

The two companies have been building the 50:50 JV plant in Michigan with an aim to begin operations within this year.

"The company doesn't need fresh funds to finance the acquisition as the acquisition money was already factored in the annual capital expenditure plan announced early this year," the message said.

Earlier this year, LGES said it will reduce its facility investments by 20 to 30 percent for the year compared with 13 trillion won in 2023.

In December, GM announced its plan to sell its stake in the Lansing plant to LGES as it adjusts its electric vehicle (EV) plans amid a slowdown in EV sales.

The Ultium Cells LLC JV between LGES and GM currently operates its No. 1 plant in Ohio and No. 2 plant in Tennessee.

kyongae.choi@yna.co.kr
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