GM, LG to make lower-cost EV battery cells in Tennessee

General Motors and battery partner LG Energy plan to upgrade their Tennessee plant to manufacture lower-cost battery cells, the companies announced on Tuesday. The joint-venture plant, known as Ultium Cells, will begin construction later this year and is expected to be completed by 2028, although the commencement of cell production has not been disclosed. GM had previously stated its intention to launch commercial production of lithium manganese-rich (LMR) cells for future electric vehicles at a U.S. facility by 2028.

LMR cells are anticipated to offer a 33% higher energy density compared to lithium iron phosphate (LFP) cells, a more cost-effective battery chemistry that several automakers have been adopting. The expansion at the Tennessee plant is projected to generate 500 new jobs. Currently, the plant specializes in producing LFP battery cells for energy storage systems. GM's battery leader has hinted at the potential shift from LFP cells to LMR cells in the future.