GM Challenges China's LFP Battery Dominance with New Factory

GM to Upgrade Ultium Battery Factory for LFP Cell Production

General Motors announced on Monday a collaboration with its joint venture partner, LG Energy Solution, to enhance its Ultium battery facility. The upgrade will focus on manufacturing lithium-iron-phosphate (LFP) cells, intended for use in the automaker’s more affordable electric vehicles.

Boosting LFP Production in the US

This factory overhaul is poised to substantially increase the production capacity of LFP batteries within the United States. Interestingly, despite its origins and initial commercialization in the U.S., the majority of LFP cell manufacturing currently takes place in China.

Spring Hill Facility Details

The $2.3 billion battery plant, located in Spring Hill, Tennessee, operates as part of the Ultium Cells LLC joint venture between GM and LG Energy Solution, a division of LG Chem.

Initial production of lithium-ion cells, utilizing a nickel-manganese-cobalt chemistry, commenced in 2024. This was approximately three years following the initial announcement of the facility.

The company intends to begin converting its battery cell lines at Spring Hill to LFP production later this year. Commercial production of these LFP cells is anticipated by late 2027.

The Rise of LFP Batteries

The automotive sector has increasingly favored LFP batteries in recent years. This trend is driven by their lower cost and enhanced safety characteristics.

The raw materials required for LFP chemistry are both less expensive and more readily available compared to other battery chemistries, such as nickel-manganese-cobalt (NMC). Furthermore, LFP batteries exhibit a reduced risk of thermal runaway and fire.

GM’s Multi-faceted Battery Sourcing Strategy

GM is implementing a three-part strategy for sourcing batteries for its expanding range of electric vehicles, which currently includes 12 different models.

NMC for Long-Range Models

For vehicles demanding extended range, GM will continue to utilize NMC batteries. For instance, the Chevrolet Silverado EV, in its longest-range configuration, employs a substantial 205 kilowatt-hour NMC pack, enabling a driving range of up to 492 miles on a single charge.

Introducing Lithium-Manganese-Rich (LMR) Chemistry

GM has also developed a new battery chemistry, designated lithium-manganese-rich (LMR). This innovative chemistry reduces the reliance on nickel and cobalt, substituting them with more affordable and domestically sourced manganese.

According to GM, LMR packs will deliver greater range than LFP batteries at a cost comparable to current LFP pricing. The anticipated market introduction of LMR cells is scheduled for 2028.

LFP for Entry-Level Vehicles

For its more accessible vehicle offerings, GM plans to transition to LFP battery technology. Andy Oury communicated this to TechCrunch in May.

Considering the consistent decline in battery pack costs over time, it is probable that LFP costs will eventually fall below those of LMR in the coming years. The upgrades to the Spring Hill facility are expected to yield commercially available LFP cells starting in 2027.