Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
LG Energy to acquire GM's stake in Michigan battery plant
The battery plant of Ultium Cells, a joint venture between LG Energy Solution and General Motors, is under construction in Lansing, Mich., in this undated photo. Courtesy of Ultium Cells
By Park Jae-hyuk
LG Energy Solution (LGES), Korea’s leading battery maker, said Tuesday it will acquire General Motors’ entire stake in their joint-venture battery plant in Michigan for 3 trillion won ($2.03 billion).
The acquisition of Ultium Cells joint venture's third plant in Lansing, Michigan, aims to reduce the burden of new facility investments and enhance operational efficiency at LGES's U.S. plants, the company added.
LGES and GM have been building the 50-50 joint venture plant with plans to begin operations later this year.
"The final contract amount may be lower than initially announced, and since it is a joint venture, the actual execution cost will be half of the total contract amount," LGES said in a statement.
"The execution cost is already included in the capital expenditure plan announced earlier this year, so no additional investment costs will be required."
Earlier this year, LGES said it would reduce facility investments by 20 to 30 percent compared to 13 trillion won in 2023.
GM announced in December that it planned to sell its stake in the Lansing plant to LGES as it adjusted its electric vehicle strategy amid slowing electric vehicle sales.
Ultium Cells, the joint venture between LGES and GM, currently operates battery plants in Ohio and Tennessee.