LG Energy Solution and General Motors' battery joint venture Ultium Cells LLC has begun mass production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) at its Tennessee plant.Ultium Cells said on July 7 (local time) that it has officially started producing ESS LFP battery

LG Energy Solution and General Motors' battery joint venture Ultium Cells LLC has begun mass production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) at its Tennessee plant.
Ultium Cells said on July 7 (local time) that it has officially started producing ESS LFP battery cells at its Spring Hill, Tennessee, facility, about four months after announcing the production plan in March.
The joint venture invested approximately $70 million to convert part of its existing electric vehicle battery production lines for ESS battery manufacturing.
The batteries produced at the Tennessee plant will be supplied through LG Energy Solution Vertech, LG Energy Solution's North American ESS system integration (SI) subsidiary. The products meet the domestic manufacturing requirements under the US Inflation Reduction Act (IRA) and will be deployed in grid stabilization projects, renewable energy-linked ESS installations and AI data center power infrastructure across North America.
With the start of production, all employees who had been placed on temporary leave at the Tennessee plant in January have returned to work.
LG Energy Solution plans to expand its North American ESS manufacturing footprint to five production sites. In addition to its facilities in Holland, Michigan, and NextStar Energy in Canada, the company's L-H Battery Company joint venture plant with Honda in Michigan also began ESS battery production on July 2. Its Lansing, Michigan, plant is scheduled to begin production later this year. By the end of 2026, LG Energy Solution aims to secure more than 50 gigawatt-hours (GWh) of annual ESS battery production capacity in North America.
The company also plans to expand new ESS orders. In North America, it has secured supply agreements with global customers including Tesla, Terra-Gen, and Hanwha Qcells. In May, it also signed a 6GWh ESS battery supply agreement with DTE Energy.
"We have successfully established an ESS production system based on LG Energy Solution's advanced battery technology and the dedication of our employees in Tennessee," said Park In-jae, chief executive of Ultium Cells.
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