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

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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Ultium Cells LLC

company

Ultium Cells LLC is a joint venture between General Motors and LG Energy Solution, dedicated to the mass production of Ultium battery cells for General Motors' electric vehicle lineup. The company focuses on developing and manufacturing advanced battery technology to support the transition to an all-electric future, with multiple large-scale manufacturing plants in the United States.

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LG Energy Solution Vertech

company · 1 deals

LG Energy Solution Vertech focuses on battery technology and energy storage solutions. They are involved in the development, manufacturing, and supply of advanced battery systems for various applications, including electric vehicles and energy storage systems.

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General Motors

company

General Motors is an automotive manufacturer that is investing in electric vehicle technology and infrastructure. They are focused on developing and manufacturing electric vehicles and related technologies.

LG Energy Solution

company

LG Energy Solution is a global leader in the manufacturing of advanced lithium-ion batteries for electric vehicles (EVs), energy storage systems (ESS), and IT applications. The company focuses on providing innovative battery solutions to accelerate the global energy transition and electrification across various industries, including grid infrastructure and automotive.