General Motors and LG Energy Solution Partner on Battery Development
General Motors and LG Energy Solution made significant announcements on Monday, revealing plans for a strategic partnership in the development of battery technology.
GM disclosed its intention to divest its stake in a Michigan joint-venture battery factory to LG. The transaction is expected to be finalized in the first quarter of 2025, with GM poised to recover its investment in the Lansing plant. The companies will maintain their technical collaboration for the advancement of prismatic cells.
The agreement will not affect GM’s ownership in Ultium Cells LLC, the joint venture with LG. The partnership also extends to the development of prismatic cells for future GM electric vehicles.
General Motors and LG Energy Solution partner on prismatic battery cells
GM’s current EV hardware is based on pouch cells produced at Ultium Cells LLC plants. However, the company aims to diversify its supply chain by exploring various chemistries and form factors, including prismatic cells.
CEO Mary Barra previously expressed GM’s openness to different battery-cell formats. The adoption of prismatic cells could offer packaging advantages and streamline manufacturing processes by reducing the number of battery pack modules.
While GM faced challenges in its EV production ramp-up, recent improvements indicate a positive trajectory. The company’s strategic shift towards prismatic cells reflects its commitment to innovation and adaptability in the rapidly evolving electric vehicle market.