LG Energy Solution has launched mass production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) at its joint venture plant with General Motors in Spring Hill, Tennessee. This expansion brings LG Energy Solution’s North American ESS battery production sites to four. The company plans to start LFP battery production at its Lansing, Michigan plant by year-end, further expanding to five locations.
On Tuesday, Ultium Cells, the U.S. battery joint venture between LG Energy Solution and General Motors, announced the commencement of ESS LFP cell production at its Spring Hill, Tennessee plant.
This milestone comes about four months after Ultium Cells revealed plans to produce LFP products at the Tennessee facility in March. At that time, the company stated it would invest approximately 70 million USD to convert part of its existing electric vehicle (EV) battery production lines for ESS battery production, with mass production slated to begin in the second quarter.
The ESS battery cells produced in Tennessee will supply the local market through Virtech, LG Energy Solution’s North American ESS system integration subsidiary. These batteries will support various projects, including grid stabilization initiatives, renewable energy-linked ESS facilities, and power infrastructure for AI data centers. The production is expected to qualify for Advanced Manufacturing Production Credit (AMPC) under the Inflation Reduction Act (IRA), as it meets U.S. manufacturing requirements.
Park In-jae, Chief Executive Officer (CEO) of Ultium Cells, stated that the launch of LFP production at our Tennessee plant showcases the expanded production capabilities. It has successfully established an ESS production system that excels in speed, flexibility, safety, quality, and productivity, leveraging LG Energy Solution’s cutting-edge battery technology and the dedication of the Tennessee workforce.
With this development, LG Energy Solution aims to accelerate its Top 5 ESS Complex Manufacturing Bases in North America strategy. The company began mass-producing LFP batteries for ESS at its Holland, Michigan plant in June 2022, marking the first such production in North America.
In November, LFP battery production for ESS commenced at the company’s Windsor, Ontario plant in Canada. On July 2, production began at the joint venture plant with Honda in Fayette, Ohio. Including the Spring Hill, Tennessee facility, LG Energy Solution now operates four North American ESS manufacturing bases. The company plans to start mass production of LFP batteries at its Lansing, Michigan plant later this year, aiming to secure a total production capacity of 50 GWh across its five North American facilities.
Since establishing Virtech in the U.S. in 2023, LG Energy Solution has maximized efficiency by vertically integrating all aspects of ESS, including project planning, design, installation, maintenance, and software development. The company has expanded its order backlog through supply contracts with global clients such as Tesla, Terragen, Excelsior Energy Capital, EG4, and Hanwha Q CELLS. In May, LG Energy Solution inked a battery supply agreement with U.S. energy company DTE for a total of 6 GWh.
