GRAND LEDGE, Mich. — "We had some heads up that GM and their technology partnerships were evolving a little bit,” Delta Township manager Brian Reed said.
That evolution that came to a head Monday, when General Motors announced it would sell its stake of the Ultium Cells battery project in Delta Township to LG Energy Solutions.
The company said Monday that it has a nonbinding agreement for the sale to joint venture partner LG Energy Solution of South Korea. The companies expect to close the sale by the end of March.
Financial details were not released Monday. But GM, which has sunk about $1 billion into the Lansing factory, said it expects to recoup its investment.
The nearly complete plant has provided about 100 jobs--- but what about the hundreds more that were expected?
I attended the Delta Township meeting Tuesday night and talked with Reed. He believes the commitment to those jobs won't change.
"We're happy that they'll still be producing batteries and on pace to providing the 1700-plus jobs,” he said.
GM provided the following statement after the announcement:
"Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the U.S. with LG Energy Solution. It will be years before some of our competitors approach this level of performance," said Paul Jacobson, GM executive vice president and CFO. "We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital efficient manner. When completed, this transaction will also help LG Energy Solution meet demand by leveraging capacity that's nearly ready to come online and it will make GM even more efficient."
GM also said the company will recoup its investment in the facility--- estimated to be around $1 billion.
While Reed is still learning the details, he knows that the light is green for the project to continue.
"All indications we have is that it's all systems go as far as the business model and the partnership,” he said.
An Ultium spokesperson confirms that the plant will be wholly owned and operated by LG energy, with no ownership stake or future investment by GM or Ultium Cells. No jobs will be eliminated.
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