GM said Monday it is working with joint venture partner LG Energy Solution to upgrade its Ultium battery factory to make lithium-iron-phosphate cells for the automaker’s low-cost EVs.
The factory’s overhaul will give LFP production in the United States a significant boost. Despite being invented and commercialized in the U.S., the vast majority of LFP cells are currently made in China.
The $2.3 billion Spring Hill, Tennessee, battery plant is part of the Ultium Cells LLC joint venture between the automaker and Korean battery maker LG Energy Solution, a division of LG Chem. The factory began pumping out lithium-ion cells, which have a nickel-manganese-cobalt chemistry, in 2024, about three years after it was first announced. The company said it will begin converting its battery cell lines at Spring Hill to produce LFP cells later this year, with commercial production expected by late 2027.
The automotive industry has been gravitating to LFP batteries in recent years for their low cost and appealing safety profile. The raw materials that make up the chemistry are cheaper and more widely available than other chemistries like nickel-manganese-cobalt (NMC), and they’re also less likely to catch fire.
GM has been pursuing a three-pronged approach to battery sourcing for its EV range, which currently spans 12 models.
At the high end, it will continue using NMC in models that require longer range. The longest-legged Chevy Silverado EV, for example, uses a massive 205 kilowatt-hour NMC pack to drive 492 miles on a single charge.
In the middle, GM has developed a new chemistry it calls lithium-manganese-rich, or LMR. The new chemistry slashes the amount of nickel and cobalt in a cell and replaces it with cheaper, domestically available manganese. The result, GM said, will be a pack that delivers more range than LFP at a cost that’s comparable to LFP today. LMR cells should hit the market in 2028.
For entry-level vehicles, GM is planning to switch to LFP, Andy Oury told TechCrunch in May. Given how consistently battery pack costs have come down over time, it’s likely that LFP costs will drop below those for LMR in the coming years. The Spring Hill upgrades should start producing LFP cells for commercial sale in 2027.
