LG Energy Solution (LGES) is significantly expanding its energy storage system (ESS) production in North America. Its joint venture, Ultium Cells, has begun mass production of lithium iron phosphate (LFP) battery cells for ESS at its Spring Hill, Tennessee plant. This strategic move involves a $70 million investment to repurpose existing EV battery production capacity.
The expansion aims to strengthen LGES’s supply chain and increase its market share in the rapidly growing ESS sector. The U.S.-made batteries are expected to qualify for Inflation Reduction Act incentives, enhancing cost competitiveness. These batteries will be distributed through LGES’s subsidiary Vertech for various energy storage projects.
This development is part of a broader investment strategy in North America. LGES targets over 50 gigawatt-hours of annual ESS manufacturing capacity across the region by the end of the year, building on previous launches in Michigan and Ohio.
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