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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] According to a Seoul Economic exclusive report, LG Energy Solution (373220) has postponed the start of production at its Lansing, Michigan plant, which it acquired from General Motors (GM), due to slowing electric vehicle demand in the U.S. and Europe.
The Lansing plant, previously known as Ultium Cells 3, was established in 2022 as a joint venture with GM with an investment of about 3 trillion won. LG Energy Solution acquired GM’s stake last May, converting it into a wholly-owned facility. The plant’s mass production, originally planned for 2024 and later delayed to 2025, has now been further postponed due to a sharp decline in demand following the end of EV subsidies in the U.S.
In addition, LG Energy Solution will suspend operations at the Ultium Cells 1 and 2 plants, a joint venture with GM, starting January 5.
A company representative stated, “Following the acquisition of the Lansing plant last year, construction of the production line is proceeding as planned, and we expect to supply products to our customers within the year.”
Industry observers anticipate that this move may accelerate restructuring across EV battery and materials companies.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
