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24x7Report > Blog > Finance > GM to produce lower-cost battery cells at Tennessee plant
Finance

GM to produce lower-cost battery cells at Tennessee plant

Last updated: 2025/07/16 at 1:29 AM
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2 Min Read
Reuters
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By Nora Eckert

DETROIT (Reuters) -Normal Motors is planning to supply lower-cost battery cells at its joint-venture plant with South Korea’s LG Power Answer in Tennessee.

The Detroit automaker is rolling out manufacturing of lithium-iron-phosphate (LFP) batteries, a expertise that’s gaining recognition at different automakers within the U.S. together with at cross-town rival Ford Motor. GM will start changing battery cell strains at its Spring Hill, Tennessee facility later this 12 months, and industrial manufacturing is anticipated to start by late 2027, the corporate stated Monday.

GM and different automakers have pulled again a few of their targets round electrical automobile manufacturing as demand for the fashions has been weaker-than-anticipated. Nonetheless, auto corporations are investing billions in future battery expertise and EV manufacturing services, with the expectation that buyers will finally make the change from conventional gasoline autos.

GM at the moment produces nickel-cobalt-manganese-aluminum cells on the manufacturing unit, and can proceed to take action at a plant in Ohio. The cells produced in Tennessee are used for EVs made on the neighboring meeting plant, together with the Cadillac Lyriq. The manufacturing unit employs about 1,300 individuals, GM stated. Staff on the Ultium Cells joint-venture manufacturing unit earlier this 12 months authorized their first contract with the United Auto Staff union.

Ford is planning to supply LFP batteries at a manufacturing unit in Michigan utilizing expertise from Chinese language battery large CATL. The plant, introduced in 2023, has drawn scrutiny from some lawmakers for its ties to the Chinese language firm. It’s anticipated to start manufacturing in 2026.

See also  Chinese EV car maker BYD launches its Han sedan in the Middle East

Each automakers are additionally engaged on manufacturing of lithium manganese-rich (LMR) chemistries, that are supposed to supply drivers with extra mileage on their EVs earlier than needing to cost. Issues round battery vary, in addition to excessive automobile costs, are a number of the prime limitations preserving prospects from shopping for electrical autos, auto executives have stated.

(Reporting by Nora Eckert in DetroitEditing by Nick Zieminski)

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TAGGED: battery, cells, lowercost, Plant, produce, Tennessee

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