Ultium Cells LLC – the joint venture between General Motors and LG Energy Solution – has confirmed a major shift in production as it prepares to manufacture lithium‑iron phosphate (LFP) batteries for Energy Storage Systems (ESS).
The move follows a $70 million investment in retooling at its Spring Hill plant, with production targeted for Q2 2026.
The new ESS‑focused LFP cells will be supplied to LG Energy Solution Vertech, the company’s US energy storage arm, which delivers integrated ESS solutions including software, lifecycle support and advanced warranties. Once completed, the cells will be packaged into large US‑built ESS enclosures for deployment across grid‑scale and data‑centre projects in North America.
LG Energy Solution plans to expand its global ESS battery output to more than 60GWh this year, with the majority based in North America. Spring Hill will join a growing ESS manufacturing network that includes facilities in Michigan, Ontario and the company’s Honda joint venture. All sites are expected to support production of the JF2 LFP pouch cell by the end of 2026.
“Spring Hill is becoming a key hub in our North American ESS manufacturing footprint which has helped offset slower than expected EV demand,” said Bob Lee, president of LG Energy Solution North America.
LFP chemistry has become the preferred choice for ESS thanks to its lower cost and suitability for stationary applications. Ultium Cells’ retooling effort includes retraining staff, with 700 furloughed employees now returning as the facility transitions to ESS LFP production.
Image: Ultium Cells Spring Hill facility. Credit: Ultium
