General Motors has finalized a deal to divest its investment in an electric vehicle battery facility that is nearing completion in Lansing, Michigan.

The automaker announced on Monday that it has entered into a nonbinding agreement with its joint venture partner LG Energy Solution, based in South Korea. The companies anticipate concluding the sale by the end of March.

While the financial specifics of the deal were not disclosed, GM has invested approximately $1 billion into the Lansing facility and believes it will recover this investment.

Looking ahead, General Motors plans to depend on its joint venture plants located in Warren, Ohio, and Spring Hill, Tennessee, to supply manufacturing sites for the seven electric vehicle models currently available in the U.S. market.

Most U.S. automakers have had to slow down their plans to construct new electric vehicle and battery plants due to a deceleration in EV sales growth, a significant change from the rapid increase seen in 2023.

As of September, new electric vehicle sales in the U.S. were up by 7.2%, totaling approximately 936,000 units, according to Motorintelligence.com. This reflects a notable decline in growth compared to a staggering 47% increase in 2023. Nonetheless, EV sales this year are predicted to exceed last year’s record of 1.19 million units. The market share of electric vehicles related to new vehicle sales is at 7.9%, an improvement from 7.6% in the previous year.

The Lansing battery plant spans 2.8 million square feet and currently employs around 100 personnel, with projections indicating it will house about 1,700 workers. Originally slated to open this year, the specific opening timeline is now uncertain.

In addition to the sale, GM also revealed that it has struck a new agreement with LG to collaborate on the development of prismatic battery cells for electric vehicles. These rectangular cells are designed to store more energy, which can lead to smaller battery sizes, weight reduction, and cost savings compared to the pouch cells that GM currently utilizes.