General Motors Switches to More Affordable Batteries for Electric Vehicles
General Motors has announced plans to produce more affordable lithium-iron-phosphate (LFP) batteries at its plant in Tennessee. Production is set to begin by the end of 2027. These batteries promise to be significantly cheaper compared to other technologies.
The company is not disclosing details but notes that the new batteries will allow for cost savings and expand consumer choice. GM will continue to offer traditional nickel-cobalt-manganese-aluminum chemistry batteries as well.
“This update will allow us to scale the production of more affordable LFP cells in the U.S., complementing our high-nickel and future lithium-manganese solutions,” stated the Vice President of GM for Battery Issues.
Plans for New Technologies
It is not yet known which specific models will receive LFP batteries, but they are likely to be used in affordable electric vehicles, not premium ones. Simultaneously, GM continues to develop other technologies, particularly lithium-manganese (LMR) batteries.
In Michigan, the company is building a new battery development center, which is expected to accelerate the implementation of LMR technologies. This is expected to cut the development time for new batteries by a year.
GM’s recent decisions demonstrate its strategy of diversifying battery technologies. This will allow the company to cover various market segments—from budget to premium models—ensuring competitiveness in a world that is rapidly transitioning to electric vehicles. A special emphasis is placed on localizing production in the U.S., which could make electric cars more affordable for local buyers.