LG Energy Solution’s acquisition of GM’s Ultium Cells Plant

Lee & Ko has advised LG Energy Solution, Ltd. (“LGES”) in connection with the acquisition by LG Energy Solution Michigan, Inc., a wholly-owned subsidiary of LGES (“LGESMI”), of Ultium Cells LLC’s (“UC”) third manufacturing plant located in Lansing, Michigan, United States. UC is a wholly-owned subsidiary of Ultium Cells Holdings LLC, in which LGES and General Motors Holdings LLC (“GM”) each holds a fifty percent (50%) stake (the “Transaction”). The Transaction was effectively a bilateral transaction involving LGES on one side (on behalf of LGESMI) and GM on the other side (on behalf of UC).   

LGES stands at the forefront of the global rechargeable battery market, with a growing presence across North America supported by a world-class manufacturing and innovation platform. Through this Transaction, valued at approximately USD 2.1 billion, LGES has substantially enhanced its production capacity and operational efficiency in North America. Amid rapidly increasing demand in the region, the ability to leverage a fully constructed facility enables LGES to minimize new capital expenditures and accelerate time-to-market. In the context of the United States’ increasingly protectionist policy environment, the Transaction is also notable for expediting LGES’s establishment of a robust local production system in the United States, strengthening its local supply capabilities.

Lee & Ko has provided comprehensive and efficient legal advice to LGES on all critical aspects of the Transaction, including the negotiation and execution of the asset transfer agreement, merger filing, and closing. Lee & Ko’s seamless support contributed to the successful execution of the transaction documents and timely closing. Following the execution of the asset transfer agreement, certain supplemental agreements, including a land purchase agreement and land licensing agreement, are under negotiation. Lee & Ko continues to provide LGES with effective legal advice on these supplemental agreements.