LG to Acquire General Motors' $2 Billion Interest in Electric Vehicle Battery Production Facility
Fresh Update on the EV Revolution: Spring is in full bloom and so are some exhilarating news from the world of electric vehicles (EVs). Here's a run-down of the latest happenings with LG, Lucid, Hyundai, and more.
LG Dodges the GM Brits
LG Energy Solution Ltd has pocketed a cool $2 billion, as it buys out its ally General Motors Company, in their EV battery joint venture in Lansing, Michigan. GM announced its decision to sell its stake back in December, amidst the industry's foggy future. The joint venture, known as Ultium Cells Plants, also maintains two other locations in Lordstown, Ohio, and Spring Hill, Tennessee, where GM still cherishes a 50/50 partnership. The Lansing plant, the sparkliest addition, saw construction late last year, with plans for production later in 2023.
LG Energy's purchase strategy? Smart and thrifty. They're aiming to maximize their existing resources instead of building new factories. The plant acquisition is part of LG Energy's capital spending plan and will serve to supply Toyota Motors with 20GWh NCMA battery nodules each year, enough juice to power around 200,000 vehicles. The deal, scheduled to wrap up on May 31, might still see a minor adjustment in the final dollar amount.
Hyundai Steps Up to the Plate in Georgia
Hyundai Motor Group's Metaplant America celebrated its Grand Opening on March 26 in Ellabell, Georgia, just a stone's throw away from Savannah. Production had already kicked off back in October 2024, when the first vehicle, a Hyundai IONIQ 5, walked off the line. Besides vehicles for Hyundai, Genesis, and Kia, the location will also produce EV batteries. The $7.5 billion plant, a historical economic behemoth for Georgia, broke ground less than six months after Hyundai Motor Group signed the agreement with the state in March 2022. The plant can initially churn out 300,000 vehicles per year, with plans to expand to 500,000 in the future.
Lucid Cashes in on Tesla's Slump
Lucid Motors' interim CEO, Marc Winterhoff, spilled that the company is quickly wooing one specific group of customers: Tesla buyers. In an interview with Yahoo Finance, Winterhoff revealed an evident surge of interest in Lucid's vehicles from Tesla owners.
"Tesla owners have always been our bread and butter," he said. "With the recent shake-ups, we're witnessing a noticeable increase in interest from Tesla buyers as they are looking for an alternative."
Winterhoff snagged a few eyeballs with his reference to Tesla's recent unpopularity, which has been mostly attributed to CEO Elon Musk's alignment with President Donald Trump and the DOGE department. Those against the Administration's tariffs and layoffs are seeking alternatives, even if that means spending a bit extra.
The Lucid Air sedan runs from roughly $70,000 to $250,000, while Tesla's Model S sets you back $81,630, putting them in the same luxury price range. To seal the deal, Lucid offered up to $4,000 to Tesla owners towards the purchase or lease of an Air sedan if they can prove ownership of a car from a range of brands ($2,000) and trade in their Tesla as well (another $2,000). Plus, if they take delivery before the end of March, they get an additional $2,000. Lucid's newest offering, the Gravity SUV, starts at $79,900, making it an irresistible offer for those craving something larger. In fact, Winterhoff revealed that half of the current Gravity orders are from existing Tesla owners.
Tesla trade-ins have soared since January compared to the previous year. According to Edmunds, March saw the highest share ever of Teslas from the model year 2017 or newer traded in at dealerships not destined for a new Tesla—the EVs represented 1.4% of all vehicles traded in until March 15, compared to 0.4% in March 2024.
In a nutshell, the EV scene is abuzz with action, with companies like Hyundai, Lucid, and LG shaking things up and adding some spice to the competitive mix. Stay tuned for more updates from this electrifying world!
- LG Energy Solution Ltd, having secured $2 billion from GM, plans to utilize the newly acquired Lansing plant to supply Toyota Motors with manganese-rich NCMA battery nodules, aiming to power approximately 200,000 electric vehicles (EVs) annually.
- Despite Hyundai Motor Group's Metaplant America plant in Ellabell, Georgia, having initiated production in October 2021, the company announced additional layoffs earlier this year, hinting at future technological advancements that might necessitate workforce adjustments.
- Lucid Motors, competing with Tesla, offers up to $4,000 incentives to Tesla owners who purchase or lease a Lucid Air sedan or the new Gravity SUV, experiencing an increase in orders from Tesla customers, with half of the current Gravity orders coming from existing Tesla owners.
