General Motors has decided to sell its stake in one of its battery plants to its joint venture partner, LG Energy Solution, as it revises its plans due to the slowdown in electric vehicle sales growth. Currently, GM has only one Ultium plant in operation and another in the works, with a third one scheduled to open soon.
When electric vehicle sales growth was at its peak, and the curve was expected to last, many automakers, including General Motors , planned accordingly. As this anticipated growth has slowed, some are revising their plans in accordance.
At the beginning of 2024, GM had only one Ultium plant in operation, opened in September 2022. This explains why the arrival of the brand's electric models was virtually piecemeal. A second went into operation this past March, and a third is scheduled to do so soon. This is the plant the company is divesting itself of.
GM said it expects to fully recoup its investment in the “nearly completed” plant, amounting to $2.6 billion. The factory is located near the Delta Township assembly plant, which manufactures the Chevrolet Traverse and Buick Enclave. “Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the U.S. with LG Energy Solution. It will be years before some of our competitors approach this level of performance,” said Paul Jacobson, GM's CFO, via a statement shared on December 2.
General Motors LG Energy Solution Battery Plant Electric Vehicles Sales Growth Ultium Cells
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