Battery plant of Ultium Cells, the joint venture between LG Energy Solution and General Motors, in Spring Hill, Tennessee (Ultium Cells)
Battery plant of Ultium Cells, the joint venture between LG Energy Solution and General Motors, in Spring Hill, Tennessee (Ultium Cells)

LG Energy Solution is set to begin production of energy storage system batteries at its joint venture facility with General Motors in Tennessee, securing a total of five ESS manufacturing sites in North America.

The Ultium Cells joint venture announced Wednesday a $70 million plan to produce lithium iron phosphate (LFP) battery cells for energy storage systems at its Spring Hill, Tennessee, plant. The project will convert part of the facility’s existing EV battery lines, with mass production targeted for the second quarter this year.

The ESS batteries will be supplied through LG Energy Solution’s North American ESS integrator Vertech for grid stabilization, renewable energy projects and AI data center power infrastructure. The move aims to improve plant utilization rate and operational efficiency while supporting stable employment amid a slowdown in EV demand.

With this transition, LG Energy Solution will have five ESS production bases in North America, spanning standalone plants in Michigan and Canada — including NextStar Energy, formerly a joint venture with Stellantis — as well as partnerships such as Ultium Cells in Tennessee and a Honda joint venture in Ohio. These sites will operate as flexible hubs capable of producing both EV and ESS batteries in response to shifting market demand.

LG’s Holland plant is a key hub, having begun North America’s first large-scale ESS battery production in June last year and now supplying key customers, including Terra-Gen and Delta. Its NextStar Energy facility in Canada surpassed 1 million cells within three months of starting ESS production, while the Lansing plant is set to begin rollout of ESS pouch cells in the first half of this year and expand to prismatic LFP batteries next year, including orders from Tesla.

Leveraging its expanding manufacturing base, LG Energy Solution is accelerating its efforts to secure new ESS contracts in North America, fueled by strong demand from renewable energy projects and AI-driven data centers.

The company plans to more than double its ESS capacity to over 60 gigawatt-hours globally by the end of this year, including more than 50 gigawatt-hours in North America. It had accumulated roughly 140 gigawatt-hours in orders as of 2024 and is aiming to exceed last year’s record 90 gigawatt-hours.

An LG Energy Solution official stated, “With the five manufacturing sites in North America, the company will drive growth, enhance operational efficiency and improve profitability. With a first-mover advantage in ESS production, we aim to further strengthen our leadership in the region.”

By Byun Hye-jin (hyejin2@heraldcorp.com)