General Motors says it will begin production of lithium-iron phosphate (LFP) batteries at its joint venture Ultium Cells battery plant in Spring Hill, TN, in 2027, marking a significant step in the automaker’s evolving battery-electric-vehicle strategy.
The addition of LFP cells to the plant, a JV with battery maker LG Energy Solution, underscores GM's desire to diversify its battery chemistry portfolio as it says it aims to produce more affordable, durable and sustainable BEVs for the mass market, especially as federal incentives for BEVs evaporate this September. LFP battery cells, which can offer lower costs, a longer lifespan and increased thermal stability compared to traditional nickel-cobalt-manganese (NCM) batteries, are seen as ideal for entry-level BEVs and high-volume models.
The Tennessee expansion is expected to create several hundred new jobs at the plant, which employs 1,300 people today.
The Spring Hill battery plant will be retrofitted with new lines specifically designed to assemble LFP batteries. These batteries will initially power select Chevrolet and Cadillac models, with plans to expand across more vehicles in GM’s current and future BEV lineup. The Ultium Cells facility in Spring Hill has been producing cells with nickel cobalt manganese aluminum chemistry. While Spring Hill is diversifying, GM notes its other Ultium Cells facility in Warren, OH, will still solely manufacture NMC cells.
Analysts view the move as part of a larger industry trend. While LFP batteries have long dominated China’s BEV market, North American automakers have only recently begun to invest in this chemistry domestically. Tesla and Ford have announced similar initiatives.
GM’s decision also supports its sustainability goals, as LFP batteries avoid the use of cobalt and nickel, two materials with high environmental and ethical concerns in their sourcing.
“This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the U.S., complementing our high-nickel and future lithium manganese-rich solutions and further diversifying our growing EV portfolio,” Kurt Kelty, vice president of batteries, propulsion and sustainability at GM, says in a statement.
At GM’s Investor Day last Fall, Kelty forecasted that cost benefits would be substantial. “We can drop the price on our Silverado BEV (large pickup truck) about $6,000 by implementing LFP.”
BYD, the fastest-growing BEV company in the world, has committed to LFP. The Chinese company recently stated that the technology is rapidly becoming a standard across automakers, and it forecasts it will be the mainstream choice in the market for the next two decades.
