Ultium Cells, a joint venture (JV) between General Motors (GM) and South Korea’s LG Energy Solution, is set to commence the production of low-cost lithium iron phosphate (LFP) battery cells at its Spring Hill facility in Tennessee, US.
This move follows a $2.3bn investment announced in 2021.
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Ultium Cells will upgrade the Spring Hill manufacturing plant to scale LFP battery cell production. This shift will commence later this year, with commercial production anticipated by late 2027.
This move is aimed to bolster the US’s position in the electric vehicle (EV) battery market and provide consumers with more affordable EV options.
GM claims that its JV sites in Spring Hill and Warren, Ohio, will constitute the “largest” original equipment manufacturer (OEM) battery cell manufacturing capacity in the US.
The JV plant will also produce nickel cobalt manganese aluminium (NCMA) pouch cells.
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By GlobalDataThe “flexible EV platform” of GM has been designed to facilitate rapid integration of various cell chemistries and form factors.
Currently, the Spring Hill plant employs around 1,300 individuals.
GM is also preparing to finalise a location for producing lithium manganese rich (LMR) chemistry and is aiming to be the first firm to generate commercial-scale production of LMR prismatic battery cells.
GM batteries, propulsion, and sustainability vice president Kurt Kelty said: “At GM, we’re innovating battery technology to deliver the best mix of range, performance, and affordability to our EV customers.
“This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the US, complementing our high-nickel and future lithium manganese rich solutions and further diversifying our growing EV portfolio.”
LG Energy Solution Advanced Automotive Battery division head and executive vice president Wonjoon Suh said: “The upgrade reflects the continued strength of our partnership with General Motors and our shared commitment to advancing EV battery innovation.
“We will bring our extensive experience and expertise in US manufacturing to the joint venture facility, further accelerating our efforts to deliver new chemistries and form factors that effectively capture the unmet needs in the EV market.”
Earlier this month, GM reported a 7% increase in US sales during the second quarter of the year, contributing to a 12% rise in the first half of the year.
