Lower-cost LFP batteries are coming to Tennessee as GM and LG upgrade their JV Ultium Cells plant to boost EV affordability, safety, and US production capacity.
Ultium Cells, the electric vehicle (EV) battery joint venture between General Motors and LG Energy Solution, will begin producing lower-cost lithium iron phosphate (LFP) battery cells at its Spring Hill facility in Tennessee, the US. The new production line is expected to be operational by late 2027.
The expansion is part of a $2.3 billion investment announced in 2021 to manufacture both LFP and nickel-cobalt-manganese-aluminium (NCMA) pouch cells at the same site. According to a report by Automotive Dive, the retooling of current production lines is scheduled to begin later this year.
LFP batteries offer a lower-cost alternative to existing chemistries such as NCMA and nickel manganese cobalt (NMC), largely due to their use of iron and phosphate instead of expensive cobalt and nickel. They are also known for enhanced thermal stability, improved safety, and longer cycle life.
Wonjoon Suh, Executive Vice President at LG Energy Solution, expressed confidence on this development.
General Motors believes the move will support its efforts to reduce EV costs for consumers. “This upgrade at Spring Hill will enable them to scale production of lower-cost LFP cell technologies in the US, said Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability.
However, LFP cells have lower energy density, which may require larger battery packs to match the range offered by NMC or NCMA chemistries, potentially impacting vehicle design and interior space.
Nevertheless, Ultium Cells also plans to begin commercial production of new lithium manganese-rich (LMR) battery cells by 2028. GM says it will be the first automaker to adopt LMR chemistry, aimed at supporting both premium electric trucks and affordable EVs.
