Electric vehicle battery production in the United States has predominantly revolved around the costly nickel-manganese-cobalt (NMC) chemistry. However, there is now a significant shift towards more affordable lithium-iron phosphate (LFP) batteries in order to reduce costs and make electric vehicles (EVs) more accessible to a wider range of consumers.
General Motors (GM) is at the forefront of this transition, as their main battery suppliers, LG Energy Solution and Samsung SDI, are working on bringing LFP battery production to the U.S. According to a report from The Korea Economic Daily, these two companies are planning to establish the first LFP plants in the country, potentially beating Ford’s upcoming LFP factory in Michigan to the punch.
Samsung SDI and GM’s joint venture in New Carlisle, Indiana, is already set to start producing prismatic cells by 2027. Samsung SDI will retrofit part of the facility, originally intended for NMC cell production, to manufacture LFP cells. LG Energy Solution is also looking to convert sections of its Ohio and Tennessee facilities into LFP manufacturing plants.
GM’s decision to shift towards LFP batteries is driven by the desire to lower costs and improve performance in their EV lineup. The next-generation Bolt EV and a future trim of the Silverado EV are already confirmed to utilize LFP packs. Additionally, GM is exploring a novel chemistry known as lithium-manganese-rich (LMR), which aims to reduce the expensive nickel and cobalt content while increasing the manganese content, ultimately offering 400+ miles of range on electric trucks and full-size SUVs at costs comparable to LFP.
While GM’s current trucks and SUVs use NCMA batteries, which are an evolution of traditional NMC batteries with higher nickel content, the shift to LFP batteries is expected to result in significant cost savings. Several other EVs in the U.S. already utilize LFP packs, including entry-level Tesla models, the Ford Mustang Mach-E, and the Rivian R1T and R1S in their dual-motor trims with the standard pack.
Overall, GM’s move towards LFP and LMR battery technologies reflects a broader industry trend towards more affordable and efficient EV batteries. By embracing these advancements, GM is positioning itself to offer a wider range of electric vehicles at competitive prices while driving innovation in the EV market.