GM and LG Energy to Upgrade Tennessee Plant for New LMR Battery Cells

General Motors and its battery partner LG Energy Solution announced Tuesday they will upgrade their joint-venture plant in Tennessee to produce a new, lower-cost battery cell chemistry for future electric vehicles.

The Ultium Cells facility will be retooled to manufacture lithium manganese-rich (LMR) prismatic battery cells, a strategic move aimed at improving the cost and performance of GM's next-generation EVs.

Plant Upgrade and New Technology

The upgrade to the Tennessee plant is scheduled to begin later this year, with construction expected to be completed in 2028, according to the joint statement. The companies did not disclose when cell production would commence.

The expansion is projected to create 500 new jobs. This development aligns with GM's previously stated goal to start commercial production of LMR cells at a U.S. facility in 2028. The Tennessee plant currently manufactures lithium iron phosphate (LFP) cells for energy storage systems.

A Shift in Battery Strategy

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This investment signals a significant strategic choice by GM in the competitive EV battery landscape. The LMR cells are notable for their potential performance advantages over other lower-cost chemistries.

Key details of the new battery technology include:

• Higher Energy Density: LMR cells are expected to deliver 33% higher energy density than LFP cells, a chemistry widely adopted by other automakers for standard-range vehicles.
• Potential for Pivot: GM's battery executives have previously indicated the automaker might bypass LFP cells for its vehicles entirely to focus on the advantages of LMR technology.

For investors and the market, GM's focus on LMR suggests a strategy to achieve lower costs without compromising on vehicle range, a critical factor for EV consumer adoption. The higher energy density could allow for smaller, lighter, and potentially cheaper battery packs while maintaining or extending driving range compared to LFP-equipped competitors.