WASHINGTON, Dec 3 (Reuters) - General Motors ( GM )

Chief Financial Officer Paul Jacobson cited "excess capacity" in

explaining the Detroit automaker's decision to sell its stake in

its joint venture battery plant in Lansing, Michigan to partner

LG Energy Solution.

Jacobson told reporters on the sidelines of an event in

Washington that the deal makes sense for both companies.

"They've got a lot of demand, and this was an opportunity

for them to satisfy their demand - at the same time we've got a

little bit of excess capacity," Jacobson said, adding the

companies would continue to work together at their joint venture

plants in Ohio and Tennessee and on prismatic cells.