Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, will begin producing lithium-iron phosphate (LFP) battery cells for energy storage systems (ESS) at its Spring Hill, Tennessee, facility in the second quarter of 2026. The expansion follows a $70 million process retooling investment aimed at meeting growing demand for grid-scale storage and power support for AI data centers.
Under the plan, completed LFP cells will be delivered to LG Energy Solution’s Vertech division, which integrates battery cells, proprietary software, lifecycle services and advanced warranties into large, U.S.-made ESS enclosures. These systems will serve utility-scale and data-center projects across North America. The Spring Hill operation will leverage technology and customer experience honed at LG Energy Solution’s standalone ESS battery facility in Holland, Michigan.
LG Energy Solution plans to raise its global ESS production capacity to more than 60 GWh this year, with over 80 percent located in North America. The Spring Hill site will join a regional manufacturing network that includes wholly owned facilities in Holland and Lansing, Michigan; Windsor, Ontario; and the L-H Battery Company joint venture with Honda. By the end of 2026, each of these locations will allocate at least some capacity to the company’s JF2 LFP pouch cell, its standard ESS product.
According to Bob Lee, president of LG Energy Solution North America, the Spring Hill facility enhances the company’s North American ESS footprint and diversifies its product portfolio “to provide tangible benefits to American competitiveness in this decade and beyond.” ESS deployments help modernize and expand the grid, stabilize output, and shorten lead times for both infrastructure and data-center construction by storing electricity from traditional and renewable sources.
LFP chemistry has become the preferred choice for stationary storage due to its cost advantages over high-nickel batteries used in electric vehicles. Injae Pahk, president and CEO of Ultium Cells, noted that the retooling marks the company’s evolution into a diversified cell manufacturer and reinforces its long-term role as a key employer and technology leader in the U.S. battery sector.
The facility’s workforce is undergoing retraining to support ESS LFP cell production, and approximately 700 employees who were furloughed in January are set to return as retooling nears completion. Ultium Cells’ flexible manufacturing platform also supports multiple chemistries, with NCMA GEN1 cell production consolidated at its Warren, Ohio, plant.
Source: Ultium Cells
