Data Center Power Demand – Ultium Cells Spring Hill Diversifies Production with LFP Batteries for Energy Storage Systems
SPRING HILL, Tenn. – Today, Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, announced that it will begin producing lithium-iron phosphate (LFP) batteries for Energy Storage Systems (ESS) enabled by a $70M investment in process retooling to be completed by Q2 2026.
Ultium Cells will deliver the ESS LFP battery cells to LG Energy Solution Vertech, the U.S. energy storage division of LG Energy Solution which offers vertically integrated ESS including proprietary software, lifecycle services, and advanced warranties. The Spring Hill facility will use LG Energy Solution’s technology expertise and customer experience in ESS batteries that were cultivated through its standalone facility in Holland, Michigan. Completed cells will be packaged by LG Energy Solution into large, U.S-made ESS enclosures that support grid-scale and data center projects throughout North America.
LG Energy Solution aims to increase its global ESS battery production capacity to over 60GWh this year, with more than 80 percent of that capacity to be located in North America. Ultium Cells Spring Hill joins LG Energy Solution’s North American ESS network which comprises wholly owned facilities in Holland and Lansing, Michigan and Windsor, Ontario, along with its joint venture with Honda, L-H Battery Company. By the end of 2026, all of these facilities will have at least some production capacity dedicated to the company’s JF2 LFP pouch cell, its standard ESS product.
Bob Lee, president of LG Energy Solution North America, said:
Spring Hill is becoming a key hub in our North American ESS manufacturing footprint which has helped offset slower than expected EV demand
“The explosive growth in energy storage diversifies our customer base and product portfolio and provides tangible benefits to American competitiveness in this decade and beyond.”
ESS help bolster, modernize and expand the grid to keep up with the electricity needs of natural population growth along with the increasing demand of AI data centers and electrification. They capture and store electricity created by traditional energy sources like oil and gas as well as renewables like wind and solar. Storing grid-scale electricity was previously difficult to achieve outside of specific geographic circumstances, like pumped storage hydropower.
In addition to making the grid more reliable and resilient by stabilizing output and compensating for fluctuations, battery-powered ESS also shorten the lead times for both grid expansion and data center construction.
LFP has become the dominant and preferred chemistry for ESS as it’s much more affordable than the high-nickel chemistries that are more prevalent in EVs. Cost is the primary factor in batteries for ESS deployments which are stationary and thus require less focus on reducing size and weight compared to EV applications.
Injae Pahk, President, CEO of Ultium Cells, said:
This announcement marks Ultium Cells’ first major retooling of the Spring Hill process equipment and reflects the company’s continued evolution as a diversified battery cell manufacturer,
“By evolving production to meet changing market demands, Ultium Cells is reinforcing its long-term position as a key employer and technology leader in the U.S. battery cell sector.”
The Ultium Cells Spring Hill cell production equipment is currently being retooled, and the workforce is undergoing retraining to support the specific requirements of ESS LFP cell manufacturing. The 700 employees furloughed in January are in the process of returning to work to support the launch of the new product line. The facility is expected to produce its first ESS LFP cells in Q2 2026.
Ultium Cells’ versatile manufacturing platform supports multiple cell chemistries, helping drive U.S. battery innovation, manufacturing, and consumer choice in the EV market, while also demonstrating the ability to adapt quickly as battery technologies evolve. As part of this flexibility, NCMA GEN1 Cell production has been consolidated to Ultium Cells Warren, Ohio.
Ultium Cells is a joint venture between General Motors and LG Energy Solution that produces Ultium battery cells to advance the push for a zero-emissions, all-electric future. Ultium Cells provides battery cell capacity to support GM’s North American electric vehicle assembly, while supporting other automotive companies and battery business opportunities. For more information about Ultium Cells, please visit www.ultiumcell.com.
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Data Center Power Demand – Ultium Cells Spring Hill Diversifies Production with LFP Batteries for Energy Storage Systems, source
