Sat. 05 Apr 2025
🌧️ 12°C in Dublin
🎮 Games
Date: 02-apr-2025
Image by Stephan Forstmann from Pixabay
LG Energy Solution (LGES), the South Korean battery manufacturing giant, announced on Tuesday, April 1, 2025, that its U.S. unit will acquire the assets of its Michigan electric vehicle (EV) battery joint venture with General Motors (GM) for $2 billion. The deal, expected to close by May 31, 2025, is part of LGES's ongoing capital expenditure strategy to consolidate and expand its battery operations in North America.
The transaction was disclosed in a regulatory filing, where LGES also noted that the final value of the acquisition may be revised following due diligence. The Michigan plant, once jointly operated by LGES and GM, was a key part of their U.S. battery production infrastructure.
GM had earlier announced its intention to exit the Michigan venture in December 2024, citing uncertainty over the future of EV tax incentives and battery production policies under the Trump administration. The automaker is also reassessing its broader EV strategy amid rising production costs and cooling consumer demand.
Despite the exit, GM and LGES will continue their partnership through two other operating joint ventures located in Ohio and Tennessee.
LGES clarified that the $2 billion payment aligns with its previously announced 2025 capital expenditure plan. However, executives hinted that the final acquisition price could be lower, depending on asset valuation and closing adjustments.
In a related development, Toyota Motor Corp. has decided to transfer its battery orders to the Lansing, Michigan plant previously managed by the GM-LG venture, reinforcing LGES's role as a dominant supplier in the region.
This strategic acquisition comes at a time when battery manufacturers are repositioning to secure supply chains, meet IRA (Inflation Reduction Act) sourcing requirements, and maintain production momentum amid evolving U.S. policy landscapes.
Date: 02-Apr-2025
Nifty opened at 23,237.35 with a 71-point gain on April 2, 2025, hinting at early market recovery after a steep drop the previous day due to global trade concerns.
Date: 02-Apr-2025
Nifty opened at 23,237.35 with a 71-point gain on April 2, 2025, hinting at early market recovery after a steep drop the previous day due to global trade concerns.
04 Apr 2025
