GM has announced a change in its strategy for electric vehicle (EV) battery production. The automaker plans to sell its stake in a battery cell plant in Michigan to its joint venture partner, LG Energy Solution.
This decision comes as GM adjusts its production capabilities due to slower-than-expected consumer demand for electric vehicles. The sale is part of a nonbinding agreement expected to close in the first quarter of next year.
The Lansing plant will become the third battery cell facility under the joint venture known as Ultium Cells LLC. GM remains committed to its future plans and its ownership stake in the joint venture with LG Energy Solution.
The automaker also announced an extension of its battery technology partnership with LG Energy Solution, focusing on the development of prismatic cells. These cells are expected to offer advantages such as reduced weight and costs for electric vehicles.
GM's strategic moves in the battery sector reflect the industry's trend of investing in partnerships and research to stay competitive in the growing EV market.