GM and LG Energy Solution to Boost Battery Production in Tennessee

News Summary

Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, is enhancing its Tennessee manufacturing facility to produce low-cost lithium iron phosphate (LFP) battery cells by 2027. This upgrade responds to the growing demand for affordable electric vehicle technology and supports GM’s commitment to diversify battery options. Full-scale production is slated to begin by late 2027, contributing to GM’s larger $35 billion investment aimed at transitioning to an all-electric lineup by 2035.

Spring Hill, Tennessee – Ultium Cells LLC, a joint venture between General Motors (GM) and LG Energy Solution, is set to enhance its battery manufacturing facility in Spring Hill, Tennessee, as part of an effort to begin production of low-cost lithium iron phosphate (LFP) battery cells by 2027. This upgrade is a direct response to the growing demand for affordable electric vehicle (EV) technologies and signifies a substantial commitment to expanding the range of battery options available to consumers.

The upgrade to the Spring Hill facility, which currently employs approximately 1,300 workers, is expected to commence later this year. Full-scale commercial production of the LFP battery cells is projected to begin by late 2027. This initiative builds upon a previous substantial investment of $2.3 billion announced by GM in 2021, signifying GM’s robust commitment to battery innovation and production in the United States.

By incorporating LFP batteries into its manufacturing capabilities, GM aims to diversify its electric vehicle portfolio. The facility will continue to produce high-nickel and lithium manganese rich (LMR) battery solutions, while the addition of LFP cells presents a more affordable alternative to nickel-rich batteries. This shift is crucial as it could lower the costs for consumers, making EVs more accessible to a broader audience.

The Ultium Cells plant in Warren, Ohio, will remain focused on producing nickel cobalt manganese aluminum (NCMA) battery cells, further expanding the energy solutions available to GM vehicles. The integration of multiple cell chemistries is designed to cater to a wide spectrum of consumer preferences, facilitating the production of both full-size electric pickups and budget-friendly EVs, such as the Chevrolet Bolt.

GM’s commitment to battery technology is evident in its significant investment in the Ancker-Johnson Battery Cell Development Center located in Warren, Michigan. This facility represents a $900 million investment aimed at accelerating advancements in battery technology and facilitating quicker adaptation to market needs.

The ongoing upgrades at the Spring Hill plant align with GM’s strategic objective to bolster U.S. manufacturing capabilities in the battery sector, ensuring safety, quality, and performance standards are consistently met. This investment also reflects GM’s broader vision of transitioning to an all-electric vehicle lineup by 2035. A total investment of $35 billion has been allocated to support this transition from gas-powered vehicles to electric models, demonstrating the company’s long-term commitment to sustainable transportation.

Notably, LFP batteries do not rely on expensive minerals like cobalt and nickel, making them a more economical solution for battery storage. Their rising popularity across the globe mirrors the increasing shift towards low-cost battery solutions that also maintain adequate performance capabilities, responding to rising consumer demands for electric vehicles.

As GM and LG Energy Solution continue to focus on securing a stable supply chain through investments in domestically sourced lithium and magnets, the upgrades at the Ultium Cells facility are positioned to bolster GM’s standing as a leader in the rapidly evolving electric vehicle market. This proactive approach seeks to meet the escalating demand for electric vehicles, ensuring that customers enjoy both quality and affordability as the industry transitions toward a greener future.

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