In a bold move to reshape the electric vehicle landscape, GM has announced its collaboration with LG Energy Solution to enhance its battery manufacturing capabilities. This initiative focuses on producing lithium-iron-phosphate (LFP) cells, which are essential for the automaker’s affordable electric vehicle lineup.
The upgrade of the Ultium battery factory in Spring Hill, Tennessee, is set to significantly increase LFP production within the United States. Although LFP technology originated in the U.S., the majority of its production currently takes place in China, highlighting a critical gap in domestic manufacturing.
This $2.3 billion facility is part of a joint venture between GM and the South Korean battery manufacturer, LG Energy Solution. Initially, the plant began producing lithium-ion cells with nickel-manganese-cobalt chemistry in 2024, following its announcement three years prior. The transition to LFP cell production is expected to commence later this year, with full-scale commercial output anticipated by late 2027.
In recent years, the automotive sector has increasingly favored LFP batteries due to their cost-effectiveness and enhanced safety features. The materials used in LFP batteries are not only more affordable but also more readily available compared to other chemistries like nickel-manganese-cobalt (NMC), making them a safer option with a lower risk of combustion.
GM’s strategy for battery sourcing is multifaceted, catering to its diverse range of electric vehicles, which currently includes 12 different models. For high-performance vehicles, GM will continue to utilize NMC batteries, which provide extended range capabilities. For instance, the Chevy Silverado EV boasts an impressive 205 kilowatt-hour NMC battery pack, enabling it to travel up to 492 miles on a single charge.
In addition to LFP and NMC, GM is also developing a new battery chemistry known as lithium-manganese-rich (LMR). This innovative approach reduces the reliance on nickel and cobalt, substituting them with more affordable and locally sourced manganese. GM claims that LMR batteries will offer greater range than LFP while maintaining a competitive cost, with market availability projected for 2028.
For entry-level electric vehicles, GM plans to adopt LFP technology, as indicated by Andy Oury in a recent interview. With the consistent decline in battery pack prices, it is anticipated that LFP costs will soon fall below those of LMR, making it a viable option for budget-friendly EVs. The upgrades at the Spring Hill facility are expected to yield LFP cells for commercial distribution by 2027.
Tim De Chant, a seasoned climate journalist, has contributed to various esteemed publications and is currently a lecturer at MIT’s Graduate Program in Science Writing. His expertise in environmental science and policy, coupled with his experience in journalism, positions him as a key voice in discussions surrounding climate technologies and sustainable practices.