Ultium Cells, a joint venture between General Motors and LG Energy Solution, is converting its Spring Hill plant to manufacture lithium iron phosphate (LFP) batteries for energy storage systems. The company is investing approximately $70 million in the conversion of the production facilities. Production is scheduled to begin in the second quarter of 2026.
The company has not provided specific details on the share of future LFP production relative to the plant’s total output. They merely state that the facilities are currently being retrofitted and the workforce is being trained accordingly.
Focus on Stationary Energy Storage
The LFP cells produced in Spring Hill will be supplied to LG Energy Solution’s U.S. energy storage division. There, the cells will be processed into complete storage systems for use in North America in applications such as power grids and data centers.
LG Energy Solution cites rising demand for energy storage systems as the reason for this focus. LFP cells are considered more cost-effective than nickel-based batteries for this application. In stationary applications, weight and installation space play a lesser role, bringing other criteria to the forefront.
The company plans to increase its global production capacity for energy storage batteries to over 60 GWh this year. Over 80 percent of this capacity is expected to be located in North America.
