Ultium Cells to Invest Additional $1 Billion in Spring Hill

GM and other automakers will save billions after the Trump administration finalized revised Corporate Average Fuel Economy (CAFE) standards. GM is projected to save $20.4B, while the industry as a whole will avoid $60.6B in compliance costs through 2031. The new rules ease efficiency requirements, benefiting automakers focused on trucks and SUVs.

GM and LG Energy Solution will upgrade their Tennessee plant to produce LMR batteries, adding 500 jobs. LMR cells aim for 33% higher energy density than LFP at similar costs, potentially improving EV range and value. Construction starts in late 2026, with completion expected in 2028, and total investment reaching $1 billion by 2030, according to the companies.

Ultium Cells, a joint venture of LG Energy Solution and General Motors (GM), plans to invest $1 billion to upgrade its Spring Hill facility for prismatic lithium manganese-rich (LMR) battery cell production, aiming for completion in 2028. This technology offers 33% greater energy density than lithium-ion phosphate (LFP) cells at a comparable cost, supporting GM's EV strategy.

GM is expected to save $20.4B in compliance costs through 2031 due to relaxed fuel economy standards, according to the U.S. Department of Transportation. The company endorsed the change, citing alignment with market realities. Other automakers like Ford, Stellantis, Toyota, and Honda are also projected to save billions. The new rules take effect in December 2023.

GM's joint venture plant in Tennessee will undergo upgrades to produce lithium manganese rich (LMR) battery cells, adding 500 jobs. The facility, operated with LG Energy Solution, will be the first to produce LMR at scale. GM aims to lower EV costs and improve performance with this technology. Total investment by 2030 is expected to reach $1 billion.

General Motors (GM) announced its next-gen lithium-manganese-rich (LMR) batteries will be mass-produced at its Ultium Cells plant in Spring Hill, Tennessee, starting in 2028. The LMR batteries, developed with LG Energy Solution, are expected to offer 33% more range than current lithium-iron-phosphate (LFP) batteries and will be used in GM's full-size trucks and SUVs, delivering over 400 miles of EPA range.