GM said on Monday that it will work with its joint venture partner LG Energy Solutions to upgrade the Ultium Battery Factory to create the automaker’s low-cost EV lithium-iron phosphate cells.
Factory overhauls will significantly improve LFP production in the US. Despite being invented and commercialized in the US, the majority of LFP cells are now made in China.
Tennessee’s $2.3 billion Spring Hill, Battery Plant, is part of Lg Chem, part of the joint venture of Ultium Cells LLC between the automaker and South Korean battery maker LG Energy Solution. In 2024, about three years after its initial announcement, the factory began pumping lithium-ion cells with nickel-manganese cobalt chemistry. The company said commercial production is expected by the second half of 2027 and will begin converting Spring Hill battery cell lines to produce LFP cells later this year.
The automotive industry has been attracted to LFP batteries in recent years because of its low cost and attractive safety profile. The raw materials that make up the chemicals are cheaper and widely available than other chemicals such as nickel manganese cobalt (NMC), and are less likely to cause a fire.
GM is currently pursuing three approaches to battery sourcing in the EV range, spanning 12 models.
At the high end, we will continue to use NMC on models that require a longer range. For example, the longest-legged Chevrolet Silverado EV uses a huge 205 kilowatt-hour time NMC pack to run 492 miles on a single charge.
In the center, GM developed a new chemistry called lithium manganese rich (LMR). The new chemistry reduces the amount of nickel and cobalt in cells, replacing it with cheaper, domestically available manganese. As a result, GM said it would be a pack that offers more range than LFPs at a cost comparable to today’s LFPs. LMR cells should be on the market in 2028.
For entry-level vehicles, GM plans to switch to LFP, Andy Oury told TechCrunch in May. Given the extent to which battery pack costs have been decreasing over time, LFP costs could fall below the cost of LMR over the next few years. The Spring Hill upgrade should begin production of LFP cells for commercial sales in 2027.
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