The battery manufacturing joint venture between General Motors Corp. and LG Energy Solution will invest hundreds of millions of dollars in its Tennessee factory to make lithium manganese rich battery cells for the first time.
The expansion by Ultium Cells in Spring Hill, about 30 miles south of Nashville, is expected to add 500 jobs to the plant’s workforce of about 1,200 and be completed by 2028. Ultium leaders said the project and the recently launched production of lithium iron phosphate batteries for energy storage have a combined investment value of $1 billion through 2030.
Ultium’s LMR batteries are destined to go into GM vehicles and have an energy density that’s up to a third higher than LFP cells. GM executives have repeatedly pointed to the new chemistry as a crucial step in improving the economics of the company’s EV business, which they’ve scaled back significantly in recent quarters.
“Adding LMR positions us to leapfrog today’s more affordable chemistries and deliver lower costs with better performance,” Kurt Kelty, GM’s vice president of battery and sustainability, said in a statement. “This flexibility allows us to scale efficiently, reach more customers, and support GM’s long-term EV strategy and profitability journey.”