LGES to Acquire GM’s Stake in Michigan Battery Plant

Ultium Cells

LGES Expands Battery Footprint in the U.S.

LG Energy Solution (LGES) will acquire General Motors' (GM) stake in the Ultium Cells joint battery plant in Lansing, Michigan. The $2.08 billion deal comes from a non-binding agreement signed in December 2024, according to both companies. This acquisition allows LGES to take full control of the nearly completed plant while GM retains its position in other Ultium ventures.

Strategic Shift Aims for Cost-Efficient Expansion

The move is part of LGES’s broader effort to reduce the investment burden while enhancing facility efficiency. GM confirmed it will still source EV batteries from Ultium Cells’ existing plants in Warren, Ohio, and Spring Hill, Tennessee. This approach enables GM to meet growing EV demand while LGES consolidates control over its Michigan asset.

U.S. Battery Market Competition Intensifies

As the U.S. accelerates its energy transition, this acquisition reflects increasing consolidation in the battery manufacturing sector. Meanwhile, LGES continues investing globally, including in Arizona and Indonesia, to scale production.

The Metalnomist Commentary

LGES’s strategic buyout of GM’s stake aligns with its push to dominate the North American battery landscape. As U.S. EV adoption climbs, full ownership of the Lansing plant strengthens LGES’s operational flexibility while helping GM preserve critical supply chain partnerships. The deal may also preemptively shield LGES from potential future policy or sourcing restrictions.