LG Energy Solution announced Tuesday that it is considering acquiring General Motors’ stake in their joint venture battery plant in Michigan.

“LG Energy Solution is reviewing the acquisition of the Ultium Cells plant 3 in Lansing to improve investment and operational efficiency and maximize operating rates of plants in North America," the Korean battery maker said in a statement.

GM revealed Monday that it plans to sell its stake in the Michigan battery plant to the Korean partner, saying the two sides signed a non-binding contract. The acquisition is reportedly estimated to be worth about $1 billion but neither side has confirmed the exact size of the deal, which is expected to be completed early next year.

LG Energy Solution said it would file regulatory notices once the deal is finalized and confirmed. The two companies decided to invest $2.6 billion to build the Michigan plant and held a groundbreaking ceremony in 2022.

The plant was initially set to be completed in the second half of this year and start first-phase mass production early next year.

However, construction and operations have been delayed amid the EV market’s slowing growth and global auto brands coping with the changing EV landscape worldwide including GM. The largest US automaker has been trying to control its EV production as the auto industry braces for President-elect Donald Trump’s EV policies. His transition team is reportedly planning on wiping out the $7,500 tax credits offered to EV buyers.

The deal will not impact the ownership stake in Ultium Cells, a 50:50 joint venture established between LG Energy Solution and GM in 2019. The joint venture currently operates two battery plants in Ohio and Tennessee.

"Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the US with LG Energy Solution,” said Paul Jacobson, chief financial officer of GM, in a statement.

“It will be years before some of our competitors approach this level of performance. We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital-efficient manner."

The Detroit-headquartered automaker said the plant will serve a new customer without naming a brand.

According to industry sources, Toyota is one of the strong candidates for battery cells from the Michigan plant. LG Energy Solution signed a long-term battery deal in October last year that will take effect next year for the Korean battery maker to supply Toyota with 20 gigawatt-hours of battery modules annually.

LG Energy Solution also announced on the same day that it will co-develop prismatic battery cells and battery-related critical materials with General Motors.

Featuring a rectangular box-like shape, prismatic battery cells offer stronger durability, and more energy while reducing the weight of an EV for less cost.

With Tuesday’s announcement, LG Energy Solution highlighted that it has become the only batter maker with three form factors of battery cells as it has already been producing pouch-type and cylindrical battery cells.

“LG Energy Solution is proud to be expanding its relationship with one of its strongest partners, GM,” said Suh Won-joon, head of the Korean battery maker’s advanced automotive battery division.

“Together with GM, we've made tremendous progress already and look forward to deepening our collaboration to drive the right chemistry and battery combinations for continued growth in the EV market.”