General Motors and LG Energy Solution are partnering in order to upgrade a Spring Hill, Tennessee facility to produce low-cost electric vehicle battery cells.

According to a July 14 release from GM, the carmaker is looking to outfit the Spring Hill facility to have it manufacture lithium iron phosphate (LFP) battery cells. LFP cells — which don't require expensive minerals such as cobalt and nickel — have surged in popularity among automakers as a lower cost alternative to standard lithium-ion cells. Tesla, Rivian and Ford Motor have all been using LFP cells in their less expensive EV models for years.

GM and LG initially agreed to invest $2.3 billion in upgrades to the Tennessee battery plant in 2021. The two companies said that their latest announcement builds on that partnership, with plans to start converting battery cell lines at Spring Hill to produce LFP cells by the end of 2025, with commercial production scheduled to begin sometime in late 2027. 

“At GM, we’re innovating battery technology to deliver the best mix of range, performance, and affordability to our EV customers,” said GM VP Kurt Kelty. “This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the U.S."