LG Energy Solution Acquires Lansing JV Plant in U.S., Secures Third Wholly Owned Plant in North America

Third Wholly Owned Plant in the United States
Accelerating the Establishment of Local Production Capacity

LG Energy Solution announced on May 8 that it has finalized the acquisition of "Ultium Cells Plant 3," its third joint venture plant with General Motors (GM), located in Lansing, Michigan, USA. With this acquisition, LG Energy Solution has secured its third wholly owned production base in North America.

Local employees are inspecting the battery production status at Ultium Cells' second plant. Provided by LG Energy Solution

The Lansing plant, which began construction in 2022, is currently 98% complete, with equipment installation underway. The total site area reaches approximately 950,000 square meters.

Previously, at its first quarter earnings briefing held last month, LG Energy Solution stated, "Amid unprecedented market volatility and uncertainty, we are pursuing a variety of strategies for sustainable growth," and added, "To maximize the use of existing production facilities, we have decided to acquire Ultium Cells Plant 3 to respond to electric vehicle (EV) demand, instead of expanding the existing Michigan Holland plant."

This acquisition is also significant in that it accelerates the establishment of a local production system and enhances local supply capabilities. Recently, the U.S. government has been strengthening protectionist policies by imposing a 10% universal tariff on all imports and negotiating differentiated reciprocal tariffs by country. In this context, local production capacity is emerging as a survival strategy for global battery companies.

Through this acquisition, LG Energy Solution expects to increase supply flexibility in North America and to further strengthen its responsiveness to customers. A company representative stated, "The acquisition of the Lansing plant in Michigan is not just about securing a production base; it is a strategic choice to maximize production facility efficiency and proactively establish production capacity in North America," adding, "We will continue to respond swiftly to market changes, enhance production competitiveness, and further differentiate customer value."

Meanwhile, with this acquisition, LG Energy Solution now operates three wholly owned plants in the United States?Michigan Holland, Michigan Lansing, and the Arizona cylindrical battery plant?as well as five joint venture plants: Ultium Cells Plant 1 in Ohio and Ultium Cells Plant 2 in Tennessee, both with GM; a joint plant in Georgia with Hyundai Motor; and a joint plant in Ohio with Honda.