Tennessee plant's renovation for affordable electric vehicle battery cell manufacture, facilitated by Ultium Cells.
Ultium Cells to Upgrade Spring Hill Facility for Lower-Cost LFP Battery Production
Ultium Cells LLC, a joint venture between General Motors (GM) and LG Energy Solution, is set to upgrade its battery cell manufacturing facility in Spring Hill, Tennessee. The $2.3 billion investment, announced in 2021, will enable the production of lower-cost Lithium Iron Phosphate (LFP) cell technologies in the U.S., according to Kee Eun, President and CEO of Ultium Cells.
The transition at the Spring Hill facility from Nickel Cobalt Manganese (NCM) chemistry to LFP is expected to begin later this year. The move aligns with a broader strategy of producing lower-cost Electric Vehicle (EV) batteries domestically to increase affordability and supply chain resilience for electric vehicles.
The UAW contract approval, achieved in 2024, has prepared the workforce and negotiations for this production shift. Commercial production of LFP cells is expected by late 2027. This timeline coincides with the market introduction of the Chevrolet Bolt EV in the 2027 model year.
Stuart C. McWhorter, commissioner of the Tennessee Department of Economic and Community Development, has expressed support for Ultium Cells' continued operations in the state. He stated that the additional investment is a testament to the state's longstanding partnerships. Kee Eun also expressed gratitude for the continued partnership and support from the State of Tennessee.
The Spring Hill facility currently employs about 1,300 people and the upgrade is not expected to affect the Ultium Cells plant in Warren, Ohio, which will continue producing cells with NCM chemistry. The upgrade will scale production of low-cost LFP battery cells.
Wonjoon Suh, executive VP and head of the Advanced Automotive Battery division at LG Energy Solution, and Kurt Kelty, VP of batteries, propulsion, and sustainability at GM, have also expressed their support for this initiative. The upgrade at Spring Hill complements GM's high-nickel and future lithium manganese rich solutions.
With the ability to manufacture battery cells in multiple cell chemistries, Spring Hill will help drive U.S. battery innovation. Eun stated that the investment will expand Ultium Cells' capabilities beyond a single battery cell chemistry. Producing new chemistries alongside existing cells will ensure Ultium Cells remains at the forefront of battery cell innovation.
The conversion of battery cell lines at Spring Hill to produce LFP cells will aid in consumer choice in the EV market, providing more affordable options for electric vehicles.
[1] UAW Contract Approval for Ultium Cells' Production Shift [2] Ultium Cells Sets Up LFP Battery Mass Production Lines at Spring Hill [3] Ultium Cells' Spring Hill Facility to Produce Lower-Cost LFP Battery Cells
- This upgrade at the Ultium Cells facility in Spring Hill will not only increase the production of lower-cost Lithium Iron Phosphate (LFP) battery cells but also align with the broader strategy of finance and technology-driven Electric Vehicle (EV) manufacturers to produce more affordable and efficient battery solutions within the industry.
- As the shift from Nickel Cobalt Manganese (NCM) to LFP begins at Ultium Cells' Spring Hill facility, it is anticipated that the increase in LFP battery production will have significant implications in the finance sector, given the potential for reduced costs and increased supply chain resilience for electric vehicles, leveraging advancements in technology.
