General Motors (GM) is selling its stake in an electric vehicle battery cell plant to its joint venture partner LG Energy Solution for $1 billion U.S.
The Detroit automaker said it expects to recoup its initial investment in the $2.6 billion U.S. manufacturing facility.
The sale is expected to close during the first quarter of 2025, said General Motors in a written statement.
The battery cell plant is a 2.8 million-square-foot facility located in Lansing, Michigan that is near completion and expected to begin operations by the end of this year.
It was expected to be the third battery cell plant between General Motors and LG Energy Solution in a joint venture the two companies named “Ultium Cells LLC.”
The other battery plants are in Ohio and Tennessee and are already operational.
General Motor’s decision to sell its stake in the Michigan battery plant comes as the company curtails its electric vehicle plans amid weakening consumer demand.
It also comes amid uncertainty regarding federal incentives for purchasing electric vehicles under president-elect Donald Trump.
General Motors said the sale of the Michigan battery plant doesn’t impact its overall ownership stake in the joint venture it has with LG Energy Solution.
The stock of GM has risen 55% this year to trade at $55.04 U.S. per share.
