GM to sell stake in battery cell plant to joint venture partner for approximately $1 billion.

• LG Energy Solution will purchase General Motors' stake in a $2.6 billion electric vehicle battery cell plant in Lansing, Michigan, as announced by the automaker on Monday.
• The car manufacturer in Detroit predicts that it will recover its $1 billion investment in the facility, according to a source who is privy to the plans.
• The sale does not affect the automaker's ownership stake in the joint venture or its plans for a separate joint venture plant with Samsung SDI.

The automaker announced Monday that it plans to sell its stake in a $2.6 billion electric vehicle battery cell plant in Michigan to its joint venture partner LG Energy Solution.

The sale of the facility is part of a non-binding agreement between the two companies, with a source familiar with the plans stating that the investment is expected to be roughly $1 billion. The Detroit carmaker anticipates recovering its investment in the facility, which is expected to close during the first quarter of next year, GM said.

The 2.8 million-square-foot plant in Lansing, Michigan, was expected to be the third battery cell facility of the joint venture, Ultium Cells LLC, after plants in Ohio and Tennessee that have already opened and are operational.

In January 2022, the Lansing plant was unveiled, marking the five-year anniversary of the joint venture between the two companies.

The GM's move to adjust production of electric vehicles is aimed at addressing slower-than-expected consumer demand and uncertainty about federal incentives for EV manufacturing and purchasing under President-elect Donald Trump.

The sale does not affect the automaker's ownership stake in the joint venture or its plans for a separate joint venture plant with Samsung SDI.

"LG Energy Solution will leverage nearly ready-to-come-online capacity to meet demand, while GM will become even more efficient with the completed transaction, according to GM CFO Paul Jacobson."

The South Korean battery supplier will have immediate access to the Lansing facility to begin installation of equipment, and the plant, currently employing nearly 100 people, is expected to start operating by the end of this year.

On Monday, GM announced an extension of its 14-year battery technology partnership with LGES, which now includes the development of prismatic cells.

Prismatic cells are a flat, rectangular shape with a rigid enclosure, making them ideal for space-efficient packaging within battery modules and packs. GM predicts that these cells will reduce EV weights and costs, as well as simplify manufacturing by reducing the number of modules and mechanical components.

GM vice president of battery cell and pack, Kurt Kelty, stated in a release that the company is focused on optimizing its battery technology by developing the appropriate battery chemistries and form factors to improve EV performance, enhance safety, and reduce costs. By extending its partnership with LG Energy Solution, GM is taking a crucial step towards achieving these objectives.

Previously, GM stated that it intended to expand its battery cell technologies beyond its "Ultium" pouches to include other forms, such as prismatic cells.