GM Really Wasn’t Kidding About Those New LMR EV Batteries

Ultium Cells, a joint venture between LG Energy Solution and General Motors (GM), will mass-produce lithium-manganese-rich (LMR) prismatic batteries at its Tennessee plant by 2028. The $1 billion investment aims to increase energy density by 33% at a cost comparable to LFP batteries, targeting electric pickup trucks and large SUVs. GM plans to segment its battery strategy by vehicle type, using LMR to fill the gap between high-nickel and LFP batteries.

General Motors (GM) invested in MP Materials five years ago to secure a domestic supply of rare-earth magnets. Commercial shipments are expected to begin by late 2026. GM's early investment aimed to reduce reliance on overseas production and strengthen its supply chain. MP Materials processes rare-earth elements in California and manufactures magnets in Texas for GM's electric vehicles.

The U.S. government reversed fuel economy rules, easing requirements for automakers. GM is expected to save $20.4B through 2031, with other automakers also seeing significant savings. The new rules may lead to more affordable cars and a resurgence in gas-powered vehicles, according to the NHTSA and automakers.

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), will invest $1 billion in its Spring Hill, Tennessee facility to produce advanced prismatic lithium manganese-rich (LMR) battery cells. The project, expected to complete by 2028, aims to offer 33% greater energy density than current lithium iron phosphate (LFP) batteries at a comparable cost. This follows previous investments of over $2.3 billion and $275 million, creating 1,700 jobs.