Electric vehicle (EV) battery manufacturers LG Energy Solution (LGES) and Samsung SDI Company have announced plans to install lithium iron phosphate (LFP) battery production lines at their joint venture plants with General Motors (GM) in the US. This decision comes as GM aims to lower its battery electric vehicle (BEV) production costs and offer a wider range of battery options in the North American market.
LGES, through its joint venture Ultium Cells LCC with GM, currently operates two battery plants in the US. These plants, located in Tennessee and Ohio, produce high-nickel-cobalt-manganese (NCM) batteries. GM has requested that some of these production lines be converted to produce LFP battery cells, which are more cost-effective.
By offering both NCM and LFP batteries in its vehicles, GM hopes to increase its BEV sales in the region. The plan is to use NCM batteries in premium BEVs and LFP batteries in mass-market models, catering to a broader customer base. The company intends to incorporate LFP batteries in five out of its seven existing BEV models, including the Chevrolet Bolt, Equinox, Blazer, and Silverado EV.
In addition to LFP batteries, LGES and GM are also collaborating on the development of lithium-manganese-rich (LMR) batteries. These batteries are expected to combine the performance characteristics of NCM batteries with the cost advantages of LFP batteries. Production of LMR batteries is scheduled to commence in 2028 at Ultium Cells.
Samsung SDI, another key player in the EV battery industry, has also agreed to modify production lines at its joint venture plant in Indiana. Originally planned to produce only NCM batteries, the facility will now also manufacture LFP battery cells. This strategic shift aligns with the growing demand for cost-effective battery solutions in the EV market.
Overall, the transition to LFP and LMR batteries signifies a significant step towards enhancing the affordability and accessibility of EVs in the North American market. With major manufacturers like LGES, Samsung SDI, and GM leading the way, the future of electric mobility looks promising.
