GM and LG to Launch Cost-Effective EV Battery Production by 2028

General Motors (GM) and LG Energy Solution plan to commence commercial production of lithium manganese-rich (LMR) battery cells in the United States by 2028. This initiative aims to reduce electric vehicle (EV) costs and enhance their competitiveness against internal combustion engine vehicles.

The LMR battery cells, developed through the Ultium Cells joint venture, will be produced at facilities in Ohio and Tennessee. These prismatic cells are designed to be more cost-effective than current nickel-rich batteries, potentially reducing battery pack costs by over 50%. The new batteries are expected to offer a range exceeding 400 miles per charge, addressing consumer concerns about EV range limitations.

GM's strategy includes diversifying battery chemistries to balance performance and affordability. In addition to LMR cells, the company is developing lithium iron phosphate (LFP) batteries for low-cost models and nickel cobalt manganese aluminum (NCMA) batteries for high-performance vehicles. This approach aims to achieve cost parity between EVs and traditional vehicles.

To support this transition, GM has secured long-term supply agreements for essential battery materials. A notable deal includes a multibillion-dollar agreement with LG Chem to supply over 500,000 tons of cathode materials, sufficient for approximately 5 million EVs. This supply will primarily come from LG Chem's upcoming cathode manufacturing plant in Tennessee, expected to begin operations in 2026.

The collaboration between GM and LG Energy Solution extends beyond battery production. The companies are investing in domestic manufacturing capabilities to strengthen the EV supply chain in North America. This includes the construction of additional Ultium Cells manufacturing plants and the localization of cathode active material production.

Conclusion:

GM and LG Energy Solution's commitment to producing cost-effective LMR battery cells by 2028 represents a significant step toward making EVs more accessible to consumers. By focusing on innovative battery technologies and securing essential material supplies, the partnership aims to accelerate the adoption of electric vehicles and support the transition to a more sustainable transportation future