South Korea’s LG Energy Solution announced on Tuesday that its U.S. unit will acquire the assets of its Michigan electric vehicle (EV) battery joint venture with General Motors for $2 billion.
The final value of the transaction, expected to be completed by May 31, remains subject to due diligence, LG Energy Solution said in a regulatory filing.
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The acquisition follows General Motors’ decision to scale back its EV expansion plans amid uncertainty over U.S. government policies on battery production and consumer tax credits. The automaker confirmed in December that it would exit the Michigan battery plant.
Despite the shift, LG Energy Solution and General Motors continue to collaborate, with joint battery production operations in Ohio and Tennessee. LG stated that the cost of acquiring the Michigan facility is included in its previously announced capital expenditure plans and could ultimately be lower than the projected $2 billion.
See also: LG Energy Solution to Cut Capex Amid Slow EV Demand Growth
Separately, Toyota Motor has confirmed that it will transfer its battery orders to the Michigan plant following GM’s withdrawal, reinforcing the site’s role in EV battery production despite the ownership change.
