LG Energy Solution has finalized the acquisition of its third joint venture factory with General Motors (GM), 'Ultium Cells LLC 3.'
On the 8th, LG Energy Solution announced that it has completed the transfer of ownership of all assets, including the building of Ultium Cells LLC 3, located in Lansing, Michigan. The acquisition amount is approximately 3.1354 trillion won.
Accordingly, the Lansing plant has been converted into LG Energy Solution's third standalone factory in North America. The total area of the Lansing plant is about 950,000 square meters, which broke ground in 2022 and is currently over 98% completed as of May. Equipment importation is in progress.
LG Energy Solution explained that this acquisition will significantly enhance investment efficiency. As new and expanded production facilities are essential to respond to existing order volumes in North America, leveraging the completed plant will alleviate the burden of new facility investments and accelerate production timelines.
LG Energy Solution said, "The U.S. government is imposing a universal tariff of 10% on all imports and is negotiating differential tariffs applied by country, thereby strengthening its protectionist stance, making local production capacity a key factor for securing an 'absolute competitive advantage.'" They noted that "recent inflation has caused infrastructure costs in North America to surge, making this investment efficiency strategy meaningful."
Through this acquisition, LG Energy Solution has secured a total of three standalone plants and five joint ventures in North America. LG Energy Solution has factories located in Holland and Lansing, Michigan, and three standalone plants in Arizona, including a cylindrical factory. In Ohio, it has joint venture plants with Ultium Cells LLC 1 and Ultium Cells LLC 2 in Tennessee with GM, as well as a joint venture plant with Hyundai in Georgia. There are also five joint venture plants, including one with Honda in Ohio and one with Stellantis in Ontario, Canada.