General Motors Company GM is set to restart battery cell production at its Ultium Cells facility in Warren, OH, following a seven-month shutdown triggered by weaker consumer demand for electric vehicles. Ultium Cells, a joint venture between General Motors and LG Energy Solution, will resume operations on its assembly lines next week, per Reuters. Once production restarts, the plant is expected to have about 1,400 employees.
The Ohio facility, which produces large-format Nickel Cobalt Manganese Aluminum pouch cells for most General Motors EVs, was idled in January, resulting in roughly 1,330 layoffs. General Motors initially expected the plant to remain closed for six months, citing subdued EV demand following the cancellation of the $7,500 federal tax credit. However, the shutdown was extended by about another month.
A limited number of workers returned in May to prepare the facility for a possible production restart. During the shutdown, General Motors also halted operations at its Detroit EV plant, affecting production of models such as the GMC Hummer EV, GMC Sierra EV and Cadillac Escalade IQ.
The General Motors-LG Energy Solution joint venture also operates a battery plant in Tennessee. The facility has been converted to produce energy storage system packs and is expected to begin manufacturing lower-cost lithium-iron-phosphate cells for EVs by late 2027. GM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EV Battery Joint Ventures of Other Automakers
In December 2025, Ford Motor Company F and South Korean battery manufacturer SK On announced plans to end their BlueOval SK joint venture. In 2021, Ford and SK Innovation, the parent company of SK On, had announced an $11.4 billion investment to build three battery gigafactories in the United States, including two in Kentucky and one in Tennessee. The initiative was designed to establish a vertically integrated battery supply chain for Ford’s next-generation electric trucks and SUVs. The decision to end the joint venture comes amid concerns over slowing EV demand and a shifting U.S. political landscape following changes to federal EV incentives.
In February, Stellantis N.V. STLA was reportedly considering exiting its joint venture with Samsung SDI to manufacture electric-vehicle batteries in the United States. Stellantis and Samsung SDI had committed billions of dollars in 2022 to develop battery plants through their jointly owned StarPlus Energy, amid expectations of strong growth in EV demand. However, Stellantis, which owns brands including Jeep and Fiat, was exploring ways to reduce its losses as the EV market outlook turned weaker than anticipated, per a Bloomberg report.
GM’s Price Performance, Valuation and Estimates
General Motors has outperformed the Zacks Automotive-Domestic industry in the last six months. Its shares have gained 6.5% against the industry’s decline of 16.2%.
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From a valuation perspective, GM appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.4, lower than the industry’s 3.05.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GM’s 2026 and 2027 EPS has moved up 47 cents and 50 cents, respectively, in the past seven days.
Image Source: Zacks Investment Research
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General Motors Company (GM) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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