Ultium Cells to retool Tennessee plant for LFP battery production for grid-scale energy storage

Type: Supply Agreement · Technology: Storage · Country: United States · Value: $70M · Announced: 2026-03-18

Ultium Cells, the joint venture between LG Energy Solution and General Motors, will begin producing lithium iron phosphate (LFP) batteries for energy storage systems at its Spring Hill, Tennessee plant in Q2 2026 following a $70 million retooling investment. The facility, previously dedicated to nickel-based EV batteries, will now supply LFP cells to LG Energy Solution Vertech (LGES) for grid-scale storage, renewable energy integration, and data center applications across North America. The shift brings Ultium’s total North American ESS production footprint to five sites, including Holland and Lansing in Michigan, Windsor in Ontario, and Jeffersonville, Ohio with Honda. By the end of 2026, all five facilities are expected to have dedicated capacity for LGES’s JF2 LFP pouch cell, with over 80% of the company’s global ESS production capacity located in North America. The move aligns with surging stationary storage demand, which GM vice president Kurt Kelty noted exceeds supply by a wide margin and is expected to remain unbalanced for several years. Employees furloughed in January 2026 are returning by April to support the new production line.

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