LG Energy Solution and GM to Mass-Produce LFP Batteries for Energy Storage in 2026

LG Energy Solution and General Motors’ joint venture, Ultium Cells LLC, announced that it will begin mass production of lithium iron phosphate (LFP) battery cells in Q2 2026 at its Spring Hill, Tennessee facility in the United States, exclusively for energy storage systems (ESS). The production line, originally dedicated to electric vehicle (EV) batteries, will undergo a $70 million investment for retooling and upgrades. The LFP cells produced will be integrated into turnkey ESS solutions by LG’s subsidiary Vertech and assembled locally in the U.S. for applications such as grid stabilization and AI data centers. This strategic shift responds to evolving market dynamics in North America, where EV demand has slowed while energy storage demand surges. LFP batteries, known for their lower cost and enhanced safety, have become the preferred choice for ESS applications. Ultium Cells has already relocated its previous NCMA battery production to its Ohio plant and is bringing back approximately 700 employees to support the new LFP production line. LG aims to achieve over 60 GWh of global ESS battery capacity by 2026, with more than 80% of this capacity located in North America. Additionally, its Windsor, Canada plant began operations in November 2025, and Stellantis exited the joint venture in February 2026.