New, cheaper batteries for electric vehicles will be made in Tennessee as part of a partnership between General Motors Co. and LG Energy Solution, the companies said Monday.

Ultium Cells LLC, a joint venture between GM and LGES, plans to upgrade its Spring Hill, Tennessee, plant later this year to produce lithium iron phosphate cells beginning in 2027. The upgrade builds on a $2.3 billion investment in the plant announced in 2021.

The plant currently makes batteries using nickel cobalt manganese aluminum chemistry and will continue to do so.

Lithium iron phosphate batteries are an important part of GM's electrification efforts, despite lagging electric vehicle sales and unfriendly policies under President Donald Trump.

Making batteries using a higher percentage of iron, a cheaper metal, could bring down the cost of EVs, which now are priced higher than GM's gas-powered models.

“At GM, we’re innovating battery technology to deliver the best mix of range, performance, and affordability to our EV customers,” Kurt Kelty, vice president of batteries, propulsion and sustainability at GM, said in a statement. “This upgrade at Spring Hill will enable us to scale production of lower-cost LFP cell technologies in the U.S., complementing our high-nickel and future lithium manganese rich solutions and further diversifying our growing EV portfolio."

Ultium's Warren, Ohio, plant will continue making cells with nickel cobalt manganese aluminum chemistry.

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