LG, GM to make LFP ESS batteries in Tennessee, recall 700 laid off workers

Ultium Cells, the artillery associated task betwixt General Motors and LG Energy Solution (LGES), plans to nutrient lithium robust phosphate (LFP) artillery cells for vigor retention astatine its Spring Hill, Tennessee tract from the 2nd 4th of 2026.

The task is putting $70m into converting accumulation lines astatine the works truthful it tin marque LFP cells designed for stationary vigor retention systems (ESS).

The changeover is acceptable to bring backmost astir 700 employees who were temporarily laid disconnected successful January 2026, erstwhile request for electrical vehicles softened.

The workforce is presently being retrained up of the planned commencement of ESS compartment manufacturing successful Q2 2026.

Ultium Cells president & CEO Injae Pahk said: “This announcement marks Ultium Cells’ archetypal large retooling of the Spring Hill process instrumentality and reflects the company’s continued improvement arsenic a diversified artillery compartment manufacturer.”

Under the agreement, Ultium Cells volition proviso LFP artillery cells to LGES Vertech, the US-based vigor retention limb of LG Energy Solution.

These cells volition beryllium incorporated into large-scale ESS enclosures intended for grid-level and information centre applications crossed North America.

The Spring Hill tract volition gully connected LG Energy Solution’s acquisition successful ESS production, including capabilities developed astatine its installation successful Holland, Michigan.

LG Energy Solution is targeting planetary ESS artillery accumulation capableness exceeding 60GWh successful 2026, with much than 80% of that capableness located successful North America.

The Spring Hill works volition go portion of a determination manufacturing web that includes sites successful Michigan and Ontario, on with the associated task with Honda, L-H Battery Company.

By the extremity of 2026, each facilities successful this web are expected to allocate portion of their output to the company’s JF2 LFP pouch compartment designed for ESS use.

Energy retention systems alteration energy generated from accepted and renewable sources to beryllium stored and deployed erstwhile needed, supporting grid stableness and reducing infrastructure improvement timelines.

Ultium Cells said its manufacturing level tin accommodate aggregate artillery chemistries, allowing accumulation to displacement successful effect to changing demand.

Earlier this month, LGES announced that its Canadian subsidiary, NextStar Energy, held an opening ceremonial for its recently built artillery manufacturing installation successful Windsor, Ontario.

Commercial operations astatine the works really began successful November 2025, with accumulation having already surpassed 1 cardinal artillery cells.

LGES claims NextStar Energy is Canada’s “first and lone commercial-scale precocious artillery manufacturing company.”