Ultium Cells (GM/LG Collab) Adds Tennessee Upgrade

Ultium Cells LLC, the joint venture between General Motors and LG Energy Solution, is upgrading its Spring Hill battery‑cell facility to begin manufacturing lithium iron phosphate (LFP) cells—a lower‑cost chemistry that enhances affordability in EVs. This expansion builds on a previous $2.3 billion investment made in 2021.

Timeline & Plant Details

• The plant currently produces NCMA (nickel‑cobalt‑manganese‑aluminum) pouch cells mostly for GM’s Cadillac Lyriq and other nearby‑assembled EVs.
• Upgrades begin later in 2025, with commercial LFP cell production targeted by late 2027.
• The facility employs approximately 1,300 workers, who ratified their first union contract earlier this year.

Why LFP?

Kurt Kelty, GM’s VP of Batteries, Propulsion & Sustainability, says the shift helps offer “range, performance and affordability” to EV consumers, diversifying cell chemistries alongside high‑nickel NCMA and the upcoming lithium manganese‑rich (LMR) chemistry .

• LFP technology offers cost advantages compared to nickel‑based cells and is already gaining traction with other automakers in the U.S.
• GM continues producing NCMA batteries at its Warren, Ohio facility, while LFP production ramps at Spring Hill. Together, the dual‑chemistry approach supports varied EV platforms.

What’s Next: LMR Cells & Broader Strategy

Alongside LFP, GM and LG plan commercial production of LMR prismatic cells by 2028, which promise higher energy density–often over 400 miles of range–and reduced pack complexity, with over 50% fewer parts compared to today’s packs.

Prior moves have already positioned GM as North America’s largest and lowest‑cost battery cell producer, underlining a goal to outpace China in EV battery leadership.

Ultium’s move to upgrade its Tennessee facility aligns with a larger push—both by GM and the electrification sector—to lower battery costs and accelerate EV adoption across the U.S.