Ultium Cells Spring Hill, TN. September 2022.

Courtesy: Ultium Cells LLC

Ultium Cells, a joint venture between General Motors and LG Energy Solution, said Monday it's upgrading its facility in Spring Hill, Tennessee, to make low-cost electric vehicle battery cells.

GM said the lithium iron phosphate battery cells — abbreviated LFP based on the elements' chemical symbols — could be significantly cheaper than battery packs used in some EVs, in part because they don't require expensive minerals like cobalt and nickel that are used in standard lithium-ion batteries.

"This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the U.S., complementing our high-nickel and future lithium manganese rich solutions and further diversifying our growing EV portfolio," Kurt Kelty, vice president of batteries, propulsion and sustainability at GM, said in a release.

GM has 12 EVs in its lineup, spanning a price range of roughly $35,000 to more than $300,000.

The Detroit automaker teamed up with LG to invest $2.3 billion in the Tennessee battery plant when it was announced in 2021. The companies said Monday's announcement builds on the partnership, but did not disclose an additional dollar amount for the upgrade.

Ultium said it expects commercial production of the LFP cells to begin by late 2027.

The announcement comes as GM has been working on a separate type of new battery technology for its largest electric SUVs and trucks. Different EV battery chemistries impact everything from the range and safety of EVs to energy efficiency and charging capabilities, among other needs.

GM also said Monday that it has invested $900 million for new battery development labs in Michigan.

The same year that GM and LG announced their investment in Tennessee, GM CEO Mary Barra said GM would exclusively offer EVs by 2035. At the time, she said the company would invest $35 billion between 2020 and 2025 on the effort, but GM has since said customer demand — which has been slower than expected — will dictate its EV plans, and it has not disclosed its total EV investment thus far.