GM, LG to Build Low-Cost EV Batteries in Tennessee
GM to Produce Cheaper EV Battery Cells in Tennessee
Table of Contents
General Motors, in partnership with LG Energy Solution, announced Monday it is upgrading its facility in Spring Hill, Tennessee, to manufacture low-cost electric vehicle battery cells. This strategic move aims to bolster GM’s electric vehicle portfolio by introducing more affordable battery options for consumers.
Shifting Towards LFP Technology
The upgrade will enable the production of lithium iron phosphate (LFP) battery cells, a technology that promises notable cost savings compared to conventional lithium-ion batteries. LFP cells are notably cheaper because they do not rely on expensive minerals like cobalt and nickel, which are essential components in many current EV battery packs.
Kurt Kelty, vice president of batteries, propulsion, and sustainability at GM, highlighted the importance of this advancement. “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,” he stated in a release.
GM currently offers 12 EV models, with prices ranging from approximately $35,000 to over $300,000, indicating a broad market appeal for its electric offerings.
Expanding a Key Partnership
The Tennessee battery plant, a joint venture between GM and LG, was initially established with a $2.3 billion investment announced in 2021. Monday’s proclamation signifies an expansion of this collaboration, though no specific additional investment figures were disclosed for the upgrade. Ultium, GM’s battery arm, anticipates commercial production of the LFP cells to commence by late 2027.
This initiative comes as GM continues to explore and develop other advanced battery technologies, notably for its larger electric SUVs and trucks. The choice of battery chemistry profoundly impacts an EV’s performance, affecting factors such as driving range, safety, energy efficiency, and charging capabilities.
GM’s Evolving EV Strategy
The move towards LFP technology aligns with GM’s broader commitment to electrification. In 2021, GM CEO Mary Barra declared the company’s intention to exclusively offer electric vehicles by 2035, backed by a substantial investment plan. While GM initially projected a $35 billion investment between 2020 and 2025, the company has since indicated that its EV rollout pace will be guided by evolving customer demand, which has been slower than initially anticipated. The total EV investment to date has not been publicly disclosed.