Ultium Cells Enhances Battery Production in Spring Hill, TN
Joint Venture Overview
Ultium Cells, a collaborative effort between General Motors (GM) and LG Energy Solution, is upgrading its facility in Spring Hill, Tennessee. This project aims to enhance the production of cost-effective electric vehicle (EV) battery cells. The initiative is part of a broader strategy to diversify and expand GM’s lineup of electric vehicles.
Cost Efficiency with LFP Cells
GM has introduced lithium iron phosphate (LFP) battery cells, which are anticipated to be considerably less expensive compared to current battery packs used in various electric vehicles. The primary reason behind this cost reduction is that LFP cells eliminate the need for expensive materials such as cobalt and nickel, which are commonly found in traditional lithium-ion battery technologies.
Kurt Kelty, GM’s Vice President of Batteries, Propulsion, and Sustainability, stated that this upgrade will enable the scaling of LFP cell production in the U.S. This move is intended to complement the existing high-nickel batteries and future lithium manganese-rich solutions within GM’s battery technology portfolio.
Investment and Future Plans
In 2021, GM and LG announced a significant investment of $2.3 billion in the Tennessee battery plant. The recent upgrades underscore the ongoing collaboration between the two companies, though specific financial details about the current improvements have not been disclosed. Ultium Cells plans to commence commercial production of the LFP cells by late 2027.
This advancement is particularly relevant as GM is also developing a new battery technology focused on its larger electric SUVs and trucks. The choice of battery chemistry plays a crucial role in determining various factors, including the range, safety, and charging efficiency of electric vehicles.
GM’s Electric Vehicle Commitment
During the same year that the partnership with LG was established, GM CEO Mary Barra announced the company’s ambition to exclusively offer electric vehicles by 2035. Initially, the company projected an investment of $35 billion from 2020 to 2025 towards this goal. However, the demand for electric vehicles has been slower than anticipated, leading GM to adjust its plans according to customer interest. Thus far, GM has not publicly disclosed the total investment made in its electric vehicle initiatives.
Summary
The enhancements at Ultium Cells’ Spring Hill facility mark a significant step toward producing more affordable electric vehicle batteries. The introduction of LFP battery technology not only helps in reducing costs but also aligns with GM’s broader commitment to electric mobility. The collaboration with LG Energy Solution continues to play a vital role in realizing these advancements and expanding GM’s EV offerings.
