GM sells stake in EV battery plant and deepens ties to LG

Driving the news: GM said Monday it had reached a deal to sell its ownership stake in a recently built Ultium Cells battery factory in Lansing, Michigan, to LG.

• The project received hundreds of millions of dollar in subsidies from the state of Michigan. The federal government also awarded Ultium Cells a $2.5 billion loan to finance construction of its factories, including the Lansing site.
• The plant was sold for about $1 billion, according to a person familiar with the deal. GM said it "expects to recoup its investment in the facility," which has about 100 employees, and that the site "remains on track to meet its previously announced employment commitments."
• The plant has not yet begun production.

Between the lines: GM also said Monday it would expand its 14-year collaboration with LG to include the development of prismatic battery cells, which are flat and rectangular for what the company calls "space-efficient packaging."

• The company uses batteries currently made in the Ohio and Tennessee plants in EVs like the Chevrolet Silverado EV, GMC Sierra EV and Cadillac Lyriq.

💭 Our thought bubble via Axios' Joann Muller: This move gives GM both financial and technological flexibility as it tries to adjust to a changing EV landscape.