General Motors partners with LG Energy Solution to ramp up battery production. They’ll support new operations at Ultium Cells LLC’s upcoming plant in Spring Hill, Tennessee. Weighing in as the largest joint venture in history, this collaboration is sustained by a heavy $2.3 billion investment. It announced plans to retool the factory to make lithium iron phosphate (LFP) cells, addressing the automotive industry’s increasing need for safer and less expensive battery alternatives.
Though production of lithium-ion cells is expected to begin at the Spring Hill factory in 2024, the first cells produced there will be NMC (nickel-manganese-cobalt) chemistry cells. In late 2021, General Motors and LG Energy Solution reached an agreement to expand the facility. This shift further highlights their commitment to developing new battery technology in the United States. The short-term modernization will increase their production capacity. It will reduce our reliance on LFP cells, which are primarily manufactured in China.
Despite its American roots, LFP technology has been characterized by a prevalence of production concentrated in China. Understanding this imbalance, General Motors has already announced a plan to repurpose its battery cell lines in Spring Hill later this year into battery pack assembly lines. Commercial production of LFP cells should start by the end of 2027. Like most suppliers, this will help place the facility as a key competitor in the growing domestic battery supply chain.
LFP batteries are becoming more popular in the automotive industry because of their low cost and attractive safety traits. This change signals a significant win for LFP technology including a nationwide shift from manufacturers away from traditional lithium-ion configurations. Consumer demand for electric vehicles is exploding. This strategic investment at the Spring Hill plant further demonstrates General Motors’ continued focus on remaining competitive and driving innovation in the rapidly evolving EV manufacturing landscape.
The partnership between General Motors and LG Energy Solution represents a significant step forward in enhancing battery production capabilities in the United States. Unanimous passage, indeed The Spring Hill factory is going to be critical in General Motors’ transition to LFP cell technology. Its position will be absolutely critical as the automotive industry looks to meet the demands of tomorrow.