GM Shifts Battery Plant to Energy Storage, Rehiring Over 700 Laid-Off Workers

GM and LG Energy Solution’s Ultium Cells battery plant in Tennessee is shifting from electric vehicle (EV) battery production to the energy storage sector. Originally supplying battery cells for the Cadillac Lyriq, Vistiq, and Acura ZDX, the facility underwent significant cutbacks last year—laying off over 700 workers—as General Motors scaled back its investments in pure-electric vehicles. The plant will now be retooled to produce lithium iron phosphate (LFP) batteries, primarily for energy storage customers such as power grids and data centers, at a conversion cost of tens of millions of dollars. The company announced that previously laid-off employees will gradually return to work by the end of April and receive training for their new roles. This strategic pivot aligns with LG Energy Solution’s broader North American strategy: several of its battery plants in Michigan, Canada, and Ohio are also transitioning to energy storage battery production. While GM has not yet clarified the plant’s long-term roadmap, it has previously stated plans to produce manganese-rich batteries at the Tennessee site by 2028.