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LG, GM joint venture begins US production of ESS LFP batteries

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·LG Energy Solution has started mass production of lithium iron phosphate (LFP) battery cells at its US joint venture plant with General Motors, accelerating its push into the fast-growing North American energy storage systems market.

·According to the joint venture Ultium Cells on Tuesday, the commercial rollout comes about four months after the company announced plans to invest roughly $70 million to convert part of its Tennessee plant’s production lines to manufacturing LFP batteries for ESS.

·The battery cells will be supplied to customers through Vertech, LG Energy Solution’s North American ESS system integration subsidiary.

·They are expected to support a wide range of applications, including grid stabilization projects, renewable ESS and power infrastructure for artificial intelligence data centers.

·Notably, the US-made cells qualify under the domestic manufacturing requirements of the Inflation Reduction Act that effectively blocks out Chinese supply chains, clearing out potential regulatory hurdles.