"Tennessee factory will undergo renovations for manufacturing economical electric vehicle battery cells by Ultium Cells"
Ultium Cells, a joint venture between General Motors (GM) and LG Energy Solution, is set to upgrade its Spring Hill, Tennessee battery cell manufacturing facility. This move will enable U.S. production of lower-cost lithium iron phosphate (LFP) battery cells, starting around 2027.
The upgrade is expected to scale production of LFP battery cells, a technology known for its cost-effectiveness due to the absence of costly metals like cobalt and nickel. This development is anticipated to lead to more affordable electric vehicles (EVs) for consumers.
Kee Eun, President and CEO of Ultium Cells, expressed gratitude for the continued partnership and support from the State of Tennessee. Stuart C. McWhorter, commissioner of the Tennessee Department of Economic and Community Development, has also expressed support for Ultium Cells and its joint venture.
The Spring Hill facility, which currently employs about 1,300 people, will be able to produce different chemistries side-by-side, supporting innovation and providing consumer choice in the EV market. This expansion underlines the U.S.-based manufacturing partnership between GM and LG Energy Solution, contributing to domestic battery innovation and jobs.
Ultium Cells' commitment to being a stable, long-term employer for the communities it serves is reaffirmed by this investment. By broadening the product portfolio, Ultium Cells aims to remain a leader in battery cell technology and a stable employer in the EV supply chain.
The conversion of battery cell lines at Spring Hill to produce LFP cells will begin later this year, with commercial production expected by late 2027. Until the facility is ready, GM will temporarily source batteries from Chinese supplier CATL for its next-gen Chevrolet Bolt EVs.
According to Kurt Kelty, Vice President of Batteries, Propulsion, and Sustainability at GM, the company is innovating battery technology to deliver affordability to its EV customers. The upgrade at the Spring Hill facility will allow Ultium Cells to produce new chemistries alongside its existing cells, further strengthening U.S. battery manufacturing.
This investment of $2.3 billion, announced in 2021, is a significant step towards driving U.S. battery innovation, manufacturing, and consumer choice in the EV market.
[1] Ultium Cells press release, [link to press release] [3] GM Authority, [link to GM Authority article]
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