LG Energy Solution unit to pay $2 billion for Michigan battery venture with GM

The value of the deal, set to close on May 31, could change after due diligence, the EV battery maker said in a filing.

South Korea's LG Energy Solution said on Tuesday that its U.S. unit will acquire the assets held by its Michigan electric vehicle battery venture with General Motors for $2 billion.

LG Energy Solution, a South Korean company, announced on Tuesday that its US division will pay $2 billion to acquire the assets owned by its Michigan electric vehicle battery joint venture with General Motors. (AP)

The value of the deal, set to close on May 31, could change after due diligence, the EV battery maker said in a filing.

GM has been scaling back its EV plans amid uncertainty about the future of EV battery production and consumer tax credits under the Trump administration and said in December it would sell its stake in the plant.

LG and GM have two other U.S. battery plant joint ventures operating in Ohio and Tennessee.

LG said the transaction costs were part of its capital spending plan announced earlier this year, and could be lower than $2 billion.

Toyota Motor has said it will transfer its order for LG Energy Solution batteries to the Lansing, Michigan plant that GM is exiting.