General Motors to Sell Michigan Battery Plant to LG Energy for $2B

Group 1: General Motors and LG Energy Solution Deal - General Motors will sell its entire stake in the Lansing, MI, battery plant to LG Energy Solution for approximately $2.08 billion, expected to close by May 31, 2025, enhancing LG Energy's U.S. battery production [1] - The acquisition of the Ultium Cells No. 3 plant allows LG Energy to streamline manufacturing operations without the need for new facilities, aligning with its annual capital expenditure plan [2] - The deal enables LG Energy to fulfill a 10-year contract with Toyota, supplying 20 gigawatt-hours of battery modules annually, sufficient for about 200,000 high-performance EVs [3] Group 2: General Motors' Strategic Shift - GM's decision to divest from the Michigan plant is part of a strategy to scale back EV expansion due to slowing sales and policy uncertainty under the Trump administration, while continuing battery joint ventures with LG Energy in Ohio and Tennessee [4] - For 2025, GM anticipates a slight decline in internal combustion engine wholesale volume in North America, with EV growth partially offsetting this impact, and expects pricing to decline by 1-1.5% year over year [5]