LG Energy Solution, GM to invest additional $1b in US battery plant for world-first prismatic LMR production

LG Energy Solution and General Motors will pour an additional $1 billion into their joint battery factory in the United States to pursue the world's first mass production of prismatic lithium manganese-rich, or LMR, batteries — a next-generation chemistry that cuts costly cobalt use while boosting energy density.

Tennessee's Department of Economic and Community Development announced Tuesday (local time) that Ultium Cells, the battery joint venture between LG Energy Solution and GM, would make the additional $1 billion investment at its Spring Hill battery factory.

The funds will be used to retrofit existing production facilities and install equipment capable of manufacturing prismatic LMR battery cells. Renovation work is set to begin later this year and wrap up by 2028.

The goal is to achieve the world's first mass production of prismatic LMR batteries, expanding Ultium Cells' product lineup beyond the pouch-type cells it has primarily produced.

LMR batteries raise the proportion of manganese — a relatively abundant material — in the cathode while reducing the use of expensive cobalt. The chemistry is considered one of the next-generation technologies capable of improving electric vehicle price competitiveness by lowering battery costs without sacrificing driving range.

The prismatic LMR cells Ultium Cells aims to produce are designed to match the manufacturing cost of lithium iron phosphate, or LFP, batteries — known for their price competitiveness — while achieving roughly 33 percent higher energy density. That means more energy stored in a battery of the same size.

GM also views LMR as a bridging technology between its existing high-nickel and LFP offerings. The company's strategy is to broaden battery options by vehicle type: high-nickel cells for range-focused models, and LFP or LMR for more affordable electric vehicles.

Kurt Kelty, GM's vice president of battery and sustainability, said building an LMR prismatic battery production system at the Ultium Cells Tennessee plant is "a critical step in providing the right battery technology for customer needs and strengthening our leadership in US battery manufacturing and innovation."

The Spring Hill plant is already expanding its role. Since June, it has been producing LFP battery cells for customers of Vertec, LG Energy Solution's energy storage system integration subsidiary.

Once LMR production capacity is added by 2028, the plant will manufacture three distinct battery chemistries — high-nickel, LFP and LMR — under one roof. Cell formats will also diversify, with prismatic cells joining the existing pouch-type line. The setup will allow the facility to shift its product mix in response to changing market demand across electric vehicles and energy storage systems.

LG Energy Solution and GM announced in 2021 that they would invest more than $2.3 billion to build the Spring Hill plant and create 1,300 jobs. In 2022, they committed an additional $275 million to expand production capacity and add 400 more jobs. The latest $1 billion investment marks another round of scale-up spending at the facility by the two companies.

The partners have also maintained technology cooperation toward commercializing LMR. In December 2024, they agreed to jointly develop prismatic battery cells and key materials, and in May 2025 they announced a joint plan to commercialize prismatic LMR batteries.

LG Energy Solution is also advancing its own LMR technology. Since securing its first related patent in 2010, the company has filed more than 300 LMR-related patents through the first half of this year.

More recently, researchers from LG Energy Solution and Seoul National University developed a technology to suppress gas generation during charging and discharging — a problem that had long hindered LMR commercialization. When applied to a large 40 Ah cell, the technology retained 92.2 percent of initial energy capacity after 883 charge-discharge cycles.

Park In-jae, chief executive of Ultium Cells, said the company would "advance its production system in line with shifting market demand and solidify its position as a technology leader in the US battery cell industry."