General Motors said on Monday that it was selling its stake in a nearly complete battery factory in Michigan to its partner LG Energy Solution, reducing to three the number of battery plants the carmaker will operate in the United States.
G.M. and LG, a South Korean company, already produce batteries jointly at factories in Warren, Ohio, and Spring Hill, Tenn., that supply vehicles like the Cadillac Lyriq and Chevrolet Equinox.
G.M. has a separate battery joint venture with Samsung SDI that is building a factory in New Carlisle, Ind. G.M. said it remained committed to that project.
Electric vehicle sales, while brisk, have not lived up to projections from a few years ago, prompting many carmakers to delay or cancel investments. “We believe we have the right cell and manufacturing capabilities in place to grow with the E.V. market in a capital efficient manner,” Paul Jacobson, G.M.’s chief financial officer, said in a statement.
LG will complete work on the Michigan factory, in Lansing, and sell its output to another customer, which will be named later. G.M. said it would get back the $1 billion it had invested in the factory, which is nearly finished.
G.M. has boasted that it is close to making a profit on electric vehicles in part because it can mass-produce batteries in the United States, driving down costs and taking advantage of manufacturing subsidies offered by the Biden administration. G.M. sold more electric vehicles in the United States than any carmaker except Tesla during the third quarter, according to Cox Automotive.
But President-elect Donald J. Trump and Republicans in Congress may undo or reduce those subsidies next year, forcing carmakers and battery producers to reassess whether they can expect a return on their investments.
G.M. has also been re-examining its approach to electric vehicle batteries since hiring Kurt Kelty, a former Tesla executive, as vice president for batteries in February. Mr. Kelty has said G.M. will diversify the kinds of batteries it uses, tailoring them to different vehicles and price ranges.
Along those lines, G.M. also said Monday that it would jointly develop prismatic batteries with LG Energy Solution. Prismatic batteries are packaged in rigid cases that weigh less and are simpler to manufacture, G.M. said. G.M. and LG currently produce so-called pouch batteries, which have soft packaging.
“We’re focused on optimizing our battery technology by developing the right battery chemistries and form factors to improve E.V. performance, enhance safety and reduce costs,” Mr. Kelty said in a statement Monday.
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