General Motors, LGES to Upgrade Spring Hill Site to Make LFP Batteries

General Motors Company GM and LG Energy Solution’s (LGES) joint venture, Ultium Cells, is upgrading its Spring Hill, TN, plant to manufacture more affordable electric vehicle (EV) battery cells. These new batteries use lithium iron phosphate (LFP) chemistry, which is less expensive than traditional lithium-ion batteries since they don’t rely on costly materials like cobalt and nickel. While LFP cells offer lower energy density, they are safer, longer-lasting and becoming increasingly competitive in terms of driving range, especially in China, where they power more than 80% of EVs.

Per Kurt Kelty, GM’s VP of batteries, propulsion and sustainability, the Spring Hill upgrade will allow for U.S.-based production of LFP batteries, complementing GM’s current high-nickel offerings and future lithium-manganese-based batteries, helping to expand the company’s EV lineup.

GM currently offers 12 EV models, ranging in price from about $35,000 to more than $300,000. The upcoming Chevy Silverado EV and next-generation Chevy Bolt EV will feature LFP batteries, though GM hasn’t confirmed if these battery packs will be built at Spring Hill. The new Bolt is expected to start production later this year and reach buyers in early 2026, well before LFP production begins locally, which is targeted for late 2027. The LFP version of the Silverado EV will reportedly offer around 350 miles of range and reduce vehicle cost by $6,000.

The Spring Hill plant was initially part of a $2.3 billion investment announced in 2021, and although the new upgrade builds on this partnership, no additional investment figures were provided. Meanwhile, GM continues to develop advanced battery technologies, including lithium-manganese-rich chemistries for large EVs, slated to launch around early 2028. It is also exploring silicon anodes and solid-state batteries in its Michigan R&D labs.

Although LFP batteries originated in the United States at the University of Texas at Austin, their mass adoption and technological advancements have been led by Chinese manufacturers like BYD and CATL. Korean companies, such as LG, have been slower to enter the LFP space but are now accelerating efforts. LFP technology is also gaining traction in the United States. Ford is developing it at its BlueOval Battery Park in Michigan and Tesla has expanded its Nevada LFP facility to support energy storage. Currently, the GM-LGES joint venture is North America’s largest battery cell manufacturer.

General Motors’ Zacks Rank & Key Picks

GM carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Aisin Corporation ASEKY and Westport Fuel Systems Inc. WPRT. While STRT and ASEKY sport a Zacks Rank #1 (Strong Buy) each at present, WPRT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 76.25%. EPS estimates for fiscal 2025 and 2026 have improved 27 cents and 47 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for ASEKY’s fiscal 2026 sales and earnings implies year-over-year growth of 7.32% and 58.89%, respectively. 

The Zacks Consensus Estimate for WPRT’s 2025 earnings implies year-over-year growth of 40.93%. EPS estimates for 2025 and 2026 have improved 44 cents and 23 cents, respectively, in the past 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research