LG Energy Solution is acquiring the 3rd factory of its joint venture 'Ultium Cells' with General Motors in Michigan, USA, to utilize it as a standalone facility. The plan is to secure an additional standalone production base in the U.S. to respond flexibly to market conditions.
On the 1st, LG Energy Solution announced that it would acquire all assets, including the building of the 3rd joint venture with General Motors, Ultium Cells, located in Michigan, USA. The acquisition amount is approximately 3 trillion won based on book value.
This acquisition involves acquiring all equity from its joint venture partner, GM, and the actual execution cost is half of the contracted amount. LG Energy Solution noted that 'the execution expense is included in the capital expenditure (CAPEX) announced earlier this year, so there will be no additional investment increase.'
Operating the joint factory with GM as a standalone plant means that the batteries produced can be supplied to other customers without needing to supply all to GM. If necessary, it will also be possible to secure additional production lines for energy storage systems (ESS). Previously, LG Energy Solution stated that it would produce ESS products using its plants in Holland, Michigan, and Wrocław, Poland.
Currently, the 3rd Ultium Cells factory is reportedly completing building construction and progressing with the equipment installation.