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GM to recoup $1 billion investment in Lansing plant

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Lansing plant to serve new, unidentified customer

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GM and LG extend partnership to prismatic cell development

By David Shepardson

WASHINGTON, Dec 2 (Reuters) - General Motors ( GM ) said

Monday it will sell its stake in its joint venture battery plant

in Lansing, Michigan, to partner LG Energy Solution

as the Detroit automaker trims its electric vehicle plans.

GM expects to recoup its investment in the facility, which a

person briefed on the matter said is about $1 billion.

The deal, which is expected to close early next year, does

not change its ownership stake in the Ultium Cells joint

venture, which operates battery plants in Ohio and Tennessee.

The largest U.S. automaker said the plant, which is near

completion, will serve an unidentified new customer.  GM said

the Lansing plant currently has nearly 100 employees and is on

track to meet employment commitments.

"We believe we have the right cell and manufacturing

capabilities in place to grow with the EV market in a capital

efficient manner," said GM Chief Financial Officer Paul

Jacobson.

The announcement comes amid uncertainty about the future of key

EV battery production and consumer tax credits. President-elect

Donald Trump's transition wants to kill the $7,500 consumer tax

credit for electric-vehicle purchases, Reuters reported this

month.

GM has been scaling back its EV plans over the last year.

In June, GM cut its EV production forecast for 2024 and in

July CEO Mary Barra said GM would not produce 1 million EVs in

North America by the end of 2025 "just because the market's not

developing but it will get there."

In 2023, GM said it would delay production of electric pickup

trucks at a Michigan plant by a year.

GM said separately the automaker and LG Energy Solution are

extending their 14-year battery technology partnership to

include prismatic cell development.

GM in August finalized a separate deal with South Korea's

Samsung SDI battery factory in Indiana that will

build prismatic cells, which could lower EV cost and weight.