EV Notes: LG to Buy Out GM’s $2B Stake in EV Battery Plant

Spring has sprung and so has more news from the electric vehicle world. From producing vehicles to purchasing them, here’s a rundown of the latest from LG, Lucid, Hyundai, and more.

LG Energy Solution Ltd will pay $2 billion to buy out its partner, General Motors Company, in their EV battery joint venture in Lansing, Michigan. GM first announced it would sell its stake in December as the automaker scales back EV plans in the face of uncertainty in the sector. The JV, known as Ultium Cells Plants, also has two other locations in Lordstown, Ohio, and Spring Hill, Tennessee, which GM will still retain a 50/50 stake in. The Lansing plant was the newest addition to the line up; construction began in late 2022, and production is scheduled to start later this year.

On LG Energy’s side, the purchase was included in its capital spending plan and is also an effort by the company to save money; rather than building new factories, leaders are trying to maximize what they already have.

The exact dollar amount on the deal, which closes on May 31, could still change and end up lower than the original $2 billion. LG Energy plans to use the plant to supply Toyota Motors with 20GWh of NCMA- nickel, cobalt, Manganese and aluminum, battery nodules each year, enough to power roughly 200,000 vehicles.

Hyundai Motor Group Metaplant America hosted its Grand Opening celebration on March 26 in Ellabell, Georgia, about 20 miles outside of Savannah. Production at the plant actually began in October 2024, when the first vehicle, a Hyundai IONIQ 5, rolled off the line. Alongside hybrid and electric vehicles for Hyundai, Genesis and Kia, the location will also manufacture EV batteries. 

Construction of the $7.5 billion plant, the largest economic development project in Georgia’s history, began less than six months after Hyundai Motor Group signed the agreement with the state in March 2022. The plant initially has the capacity to manufacture 300,000 vehicles annually, and the company plans to expand in the future to 500,000.

According to interim CEO Marc Winterhoff, Lucid Motors is quickly becoming more popular with one particular customer segment: Tesla owners. In an interview with Yahoo Finance, he said the company has seen a “clear” uptick of interest in its vehicles from Tesla buyers.

“Tesla buyers always were the source of our sales because they were already used to using electrical drivetrains, and they look for an opportunity to have something else, something better," he said. "And now, with recent changes, obviously, since the beginning of the year, we see a clear uptick of interest in Lucid from Tesla buyers because they're looking for another option.”

Winterhoff was partially alluding to the unpopularity of Tesla CEO Elon Musk, who has heavily aligned himself with President Donald Trump and the DOGE department. Those unhappy with the myriads of tariffs and layoffs the Administration has enacted are looking to send their money elsewhere, even if it means spending a bit more.

The Lucid Air sedan varies from roughly $70,000 to $250,000 while Tesla’s model S starts at $81,630, putting them roughly in the same price range and attractive to those considering a more “luxurious” option. To sweeten the deal, in March, Lucid offered up to $4,000 for Tesla owners towards the purchase or lease of an Air sedan if customers can provide proof of ownership of a car from a range of brands ($2,000) and trade in their Tesla as well as take delivery of before the end of March ($2,000).

Lucid’s newest offering, the Gravity SUV, starts at $79,900, making it an even better option for those looking to go bigger. In fact, Winterhoff said half of the current Gravity orders are from existing Tesla owners.

In general, Tesla trade-ins are higher since January in comparison to last year. According to Edmunds, March saw the highest share ever of Teslas from the model year 2017 or newer traded in at dealerships that did not go towards a new Tesla. The EVs represented 1.4% of all vehicles traded in until March 15, compared to 0.4% in March 2024.