LG Energy Solution, GM joint venture begins LFP battery mass production for energy storage at Tennessee factory

Ultium Cells, the battery joint venture between LG Energy Solution and General Motors, has begun mass production of lithium iron phosphate batteries for energy storage systems at its Tennessee factory. The move, a partial conversion of existing electric vehicle production lines, is part of a strategy to diversify the company's product portfolio and accelerate its push into the North American market as growth in the EV sector slows.

Ultium Cells said it launched mass production of LFP battery cells for energy storage systems at its factory in Spring Hill, Tennessee, on Tuesday — roughly four months after announcing the plan in March. The company had previously said it would invest about $70 million to convert part of its existing EV battery production lines for energy storage use.

Battery cells produced at the Tennessee factory will be supplied through Vertec, LG Energy Solution's North American energy storage system integration subsidiary. The cells meet the domestic manufacturing requirements of the US Inflation Reduction Act and are intended for use in North American grid stabilization projects, renewable energy-linked storage facilities and power infrastructure for AI data centers.

Ultium Cells said it completed the production line conversion in under five months, demonstrating manufacturing flexibility. The company added that all Tennessee factory employees placed on temporary leave in January have returned to work, improving both operational and employment stability at the plant.

The line conversion is a strategic move to raise factory utilization rates and maximize production efficiency amid slowing EV market growth. Ultium Cells plans to expand its product portfolio to meet rising demand in the fast-growing North American energy storage market.

Park In-jae, chief executive of Ultium Cells, said the LFP production launch "demonstrates an expansion of our manufacturing capabilities," adding that the company had built a competitive energy storage production system in terms of speed, flexibility, safety, quality and productivity, drawing on LG Energy Solution's battery technology and the efforts of Tennessee employees.

Chris Disotell, plant manager at Ultium Cells, said the successful transition to LFP production "reflects the strong partnership between LG Energy Solution and GM," and that Ultium Cells would play a central role in helping companies reliably deploy energy storage systems for power grids and a range of other strategic technology applications.

LG Energy Solution is using the Tennessee factory's production milestone to accelerate its goal of establishing five major ESS manufacturing hubs in North America. The company achieved its first large-scale ESS mass production in North America at its Holland, Michigan factory in June last year, followed by ESS production at Canada's NextStar Energy in November last year. On Thursday, Ultium Cells also began ESS mass production at a Honda joint venture factory in Michigan, and the Lansing, Michigan factory is expected to begin production later this year.

LG Energy Solution aims to secure more than 50 GWh of ESS production capacity in North America alone by the end of this year, using that base to pursue new supply contracts. The company has signed supply agreements in North America with Tesla, Teragen, Excelsior Energy Capital, EG4 and Hanwha Qcells. In May, it signed a 6 GWh ESS battery supply deal with DTE Energy, which is carrying out an Oracle AI data center project.