GM is getting ready to start changing manufacturing traces at its battery plant in Tennessee later this yr for low-cost LFP EV batteries. GM’s three way partnership, Ultium Cells, introduced further upgrades on the facility on Monday because it prepares for a brand new period.
GM will construct low-cost LFP EV batteries within the US
After beating out Ford and Hyundai final yr to develop into America’s second-best EV vendor, GM is widening its lead in 2025.
Ultium Cells, GM’s three way partnership with LG Power Resolution, introduced plans to improve its Tennessee battery plant on Monday because it prepares to introduce lower-cost lithium-iron-phosphate (LFP) battery cells.
The upgrades construct on the $2.3 billion funding introduced in April 2021 to transform the power right into a key EV and battery hub. The corporate initially stated the Tennessee plant was “on the coronary heart of GM’s EV technique,” however that was additionally when GM was nonetheless dedicated to an all-electric future.
GM will start changing manufacturing traces to accommodate the lower-cost LFP batteries on the facility later this yr. By late 2027, the corporate expects to start out industrial manufacturing.
With LFP batteries, GM stated it’s “concentrating on important battery pack value financial savings in comparison with at present’s high-nickel battery pack whereas rising client EV selection.”
The Spring Hill, Tennessee, plant at present employs round 1,300 workers. With the power to supply a number of chemistries, GM stated the power will “information the subsequent part of” its battery technique.
After selecting Spring Hill for its LFP batteries, the subsequent step, in accordance with GM, is discovering a house for lithium manganese-rich batteries. GM not too long ago introduced plans to develop into the primary firm to supply LMR prismatic battery cells at industrial scale.
In the meantime, GM’s Warren, Ohio, plant will proceed producing NCM batteries, which it says have helped it unlock over 300 miles of vary.
Electrek’s Take
GM’s electrical car gross sales greater than doubled within the second quarter, led by the hot-selling Chevy Equinox EV. The corporate bought practically 46,300 EVs in Q2, up 11% from final yr.
Chevy is at present the fastest-growing EV model within the US, whereas Cadillac claims to have already achieved “EV chief” standing within the luxurious phase this yr. Nevertheless, that doesn’t embrace Tesla.
Even GMC is constructing momentum with the brand new Sierra EV, seeing robust preliminary demand, and Hummer EV gross sales are selecting up.
With new, lower-cost batteries on the best way, GM goals to proceed narrowing the hole with Tesla. GM affords 13 electrical autos, protecting practically each phase of the market. It already calls the Chevy Equinox EV “America’s most inexpensive +315 vary EV,” however GM has even lower-priced fashions on the best way, together with the next-gen Chevy Bolt EV.
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