LG Energy revealed that its U.S. operating division plans to purchase the Michigan electric vehicle battery project which it co-operated with General Motors (GM) for $2 billion. The acquisition process will finalize on May 31 but may experience value adjustments based on due diligence assessments.
The EV division of GM has reduced its operations because the company wants to understand battery manufacturing costs and evaluate the impact of Trump administration tax incentives. The Michigan plant operated by GM will shut down in December so LG Energy can acquire full ownership of the facility.
The Ohio and Tennessee battery plant operations between LG Energy and GM remain active despite their decision to exit the Michigan facility. Toyota Motor will move its battery production to the Michigan factory that GM has announced for closure.
The $2 billion acquisition price belongs to LG Energy’s 2025 capital spending budget although the company expects the final cost to be lower than anticipated. The acquisition enhances LG’s U.S. battery production capabilities while supporting its growth plans through uncertain market conditions.
