LG Energy Solution, GM to Mass-Produce World's First Prismatic LMR Batteries at Tennessee Plant; Operations Set for 2028

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.

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.