GM–LG's Ultium plant in Tennessee starts LFP production for grid storage, recalling 700 workers

Ultium Cells — the LG Energy Solution–GM joint venture — began mass production of LFP battery cells for energy storage systems at its Spring Hill, Tennessee plant, a $70M conversion of lines built for EV cells. The changeover recalls about 700 workers temporarily laid off in January when EV demand softened. Cells supply LGES Vertech, LG's US storage arm, for grid-level and data-center ESS across North America; LG targets 60GWh+ of global ESS capacity in 2026, over 80% of it in North America.

Why it matters

The ESS pivot is now the pattern, not the exception: the Honda JV in Ohio converted first, the Q2 numbers showed why, and now the GM JV follows — with the political dividend (700 recalled jobs) that makes the pivot durable. US EV-battery overcapacity is being re-aimed at the one buyer scaling on schedule: AI-driven grid demand.

What to watch

Whether the idled Ultium Ohio lines get the same conversion, and LFP ESS pricing as Korean-made-in-US cells compete with Chinese imports under tariff walls.