LG Energy Solution Develops Prismatic Battery with GM... "Considering Acquisition of Ultium Cells Plant 3"

Development of Prismatic Batteries and Core Materials
Industry's Only Company with '3 Major Form Factors'
"Considering Acquisition of Ultium Cells Plant 3"

LG Energy Solution is set to jointly develop prismatic batteries with General Motors (GM).

Additionally, LG Energy Solution and GM have agreed to discuss LG Energy Solution's acquisition of GM's stake in the Ultium Cells Plant 3 located in Michigan, USA. This move is interpreted as a readjustment of their joint venture amid growing uncertainties in the U.S. market ahead of the inauguration of the second Trump administration.

On the 3rd, LG Energy Solution announced that it had signed a "contract for joint development of prismatic batteries and key materials" with GM, the number one automaker in the United States. Both companies described this as "another fruit of a solid partnership that has lasted for 14 years," adding, "The prismatic batteries developed through this agreement will be installed in GM's next-generation electric vehicles."

On the 10th, LG Energy Solution headquarters on Yeouidaero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

This is the first time LG Energy Solution has formalized its plan to develop prismatic batteries. With this, LG Energy Solution has become the only company among global battery manufacturers to have a portfolio covering all battery form factors: pouch-type, cylindrical, and prismatic. It is evaluated that this will enable a more strategic response as the electric vehicle market moves past the chasm (a temporary demand stagnation) into a full growth phase and customer demands diversify.

Prismatic batteries, which have a flat box shape, are surrounded by aluminum cans, giving them strong resistance to external shocks. Their relatively high cell rigidity allows for structural simplification at the battery module and pack stages, which is an advantage.

LG Energy Solution has secured in-house development and manufacturing capabilities not only in pouch-type and cylindrical batteries but also in the prismatic battery sector. The company holds numerous patents in design and process fields, including prismatic packaging technology. Its world-class electrode production and stacking process technologies are expected to play a key role in prismatic battery development.

While prismatic batteries have excellent durability, a representative drawback has been the occurrence of unused space inside. This is because the "jelly roll," made by rolling cathode, anode, and separator materials, leaves corner areas as empty spaces when placed inside the square-shaped aluminum can.

Recently, many prismatic batteries have adopted a method of stacking materials layer by layer, and LG Energy Solution possesses industry-leading technological leadership in this area. Starting with joint development with GM, LG Energy Solution plans to build a balanced product portfolio across pouch-type, cylindrical, and prismatic form factors, with the capability to selectively supply according to customer demands.

LG Energy Solution has proven its competitiveness by achieving various orders across product chemistries and form factors. This year, it secured contracts for Renault electric vehicle pouch-type LFP batteries in July, Mercedes-Benz electric vehicle batteries in September, Ford commercial vehicle pouch-type high-performance ternary batteries in October, and Rivian electric vehicle cylindrical 46-series batteries in November.

Kurt Kelty, GM Vice President of Battery Cell & Pack, said, "We made LG Energy Solution and Ultium Cells the largest battery cell manufacturer in North America, powering a diverse electric vehicle portfolio today in North America," adding, "Expanding our partnership with LG Energy Solution takes us a step further in developing form factors that improve electric vehicle performance, enhance safety, and reduce costs."

Seowon Jun, Vice President and Head of the Automotive Battery Division at LG Energy Solution, stated, "We are pleased to expand our partnership with GM, one of our strongest partners," emphasizing, "We will successfully develop new form factors stably and continue to provide irreplaceable customer value."

Meanwhile, on the 2nd (local time), GM announced a non-binding agreement to sell its stake in Ultium Cells Plant 3, under construction in Lansing, Michigan, USA, to LG Energy Solution. Through the stake sale, GM will recover approximately $1 billion (about 1.4 trillion KRW) in investment funds, with the sale expected to be completed in the first quarter of next year.

LG Energy Solution stated, "We are reviewing the acquisition of Ultium Cells Plant 3, located in Lansing, Michigan, to optimize investment and operational efficiency and maximize utilization rates of our North American plants," adding, "We will communicate through disclosures once finalized."