Spring Hill Facility to Produce Cost-Effective LFP Cells
Ultium Cells, the joint venture between General Motors and LG Energy Solution, announced plans on Monday to upgrade its battery manufacturing facility in Spring Hill, Tennessee. The focus of the upgrade is to begin production of lithium iron phosphate (LFP) battery cells, which are significantly cheaper to produce than conventional lithium-ion batteries.
Unlike standard lithium-ion packs that rely on costly materials like cobalt and nickel, LFP batteries use more abundant resources, making them a lower-cost alternative. “This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the U.S.,” said Kurt Kelty, GM’s vice president of batteries, propulsion, and sustainability. He added that the initiative complements GM’s broader battery strategy, which also includes high-nickel and lithium manganese-rich chemistries.
Commercial Production Expected by 2027
Ultium Cells expects commercial production of the LFP cells to begin by late 2027. The facility, originally announced in 2021 with a $2.3 billion investment from GM and LG, is a key part of GM’s long-term electric vehicle strategy. Although the companies did not disclose the cost of the latest upgrade, Monday’s announcement signals an expansion of their existing partnership.
GM currently offers 12 electric vehicle models, ranging from approximately $35,000 to over $300,000. The use of LFP technology will help the automaker better serve the lower end of that range, providing more affordable EV options for price-sensitive consumers.
Battery Innovation Expands Across the U.S.
Alongside the Spring Hill upgrade, GM also revealed it has invested $900 million in new battery development labs in Michigan. These facilities will support ongoing research into next-generation EV battery chemistries, including those intended for the company’s largest electric trucks and SUVs.
Different battery chemistries have trade-offs in energy efficiency, range, safety, and charging capabilities. By diversifying its battery portfolio, GM aims to match specific technologies to the varying needs of its expanding EV lineup.
EV Strategy Adjusts to Market Demand
In 2021, GM CEO Mary Barra pledged that the company would sell only electric vehicles by 2035, committing $35 billion toward the transition between 2020 and 2025. However, slower-than-expected consumer adoption has led GM to scale its rollout pace according to demand. While GM remains committed to electrification, the company has not released a revised figure for its total EV investment beyond 2025.
The Spring Hill upgrade marks a practical step in reducing EV costs, a critical barrier to mainstream adoption. As the auto industry navigates changing market dynamics and evolving consumer expectations, battery cost and efficiency remain pivotal to long-term success.
With its investment in LFP battery technology at the Spring Hill plant, GM is reinforcing its commitment to more affordable and scalable EV production. While broader electrification goals remain flexible in light of market conditions, initiatives like this upgrade underscore the company’s ongoing push to innovate and expand its electric vehicle offerings across a range of price points and performance needs.
