General Motors is selling its stake in one of the four huge EV battery plants for the US to LG Energy Solution.

The plant in question is under construction near Lansing, Michigan, and is set to open in the coming months. Work on the site started in 2022, and it was owned by GM and LG through their Ultium Cells joint venture. The duo also has battery plants in Spring Hill, Tennessee, and Warren, Ohio, and GM is also planning a joint venture battery plant with Samsung SDI in New Carlisle, Indiana.

Read: GM And Samsung SDI Building $3.5 Billion EV Battery Plant In Indiana

GM has invested approximately $1 billion in the Lansing site and expects to fully recoup this investment. The site currently employs 100 people, although this will eventually grow to 1,700 staff. It’s understood that under the sole ownership of LG, the plant will supply another automaker with batteries, although specific details haven’t been announced.

“Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the U.S. with LG Energy Solution,” GM executive president and CFO Paul Jacobson said of the move. “It will be years before some of our competitors approach this level of performance. We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital efficient manner. When completed, this transaction will also help LG Energy Solution meet demand by leveraging capacity that’s nearly ready to come online and it will make GM even more efficient.” 

Other plants operated by Ultium Cells supply batteries to vehicles, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Lyriq, Chevrolet Blazer EV, Chevrolet Equinox EV, and the GMC Hummer EV Pickup and SUV.

Despite this shake-up, General Motors and LG Energy Solution still have a close relationship, and on the same day the split was announced for the Lansing plant, the two companies said they were extending their 14-year battery technology partnership to include prismatic cell development. These new prismatic cells will power future EVs from GM and promise to reduce weight and cost while simplifying manufacturing processes.

“Together with LG Energy Solution, we’ve built Ultium Cells into one of the largest battery cell manufacturers in North America, creating thousands of advanced technology jobs in the U.S. and powering our diverse EV portfolio,” GM vice president of battery cell and pack Kurt Kelty said. “We’re focused on optimizing our battery technology by developing the right battery chemistries and form factors to improve EV performance, enhance safety, and reduce costs. By extending our partnership with LG Energy Solution, we’re taking an important step toward these goals.”