GM and LG retool Tennessee plant for energy storage
GM and LG will recall 700 workers to produce energy storage batteries in Tennessee. The shift addresses excess capacity from slower electric vehicle sales.
General Motors Company and its partner LG Energy Solution, Ltd. are repurposing an electric-vehicle battery factory in the United States to address shifting market demands. The joint venture, Ultium Cells, confirmed on Tuesday that the Tennessee-based facility will transition to manufacturing batteries for energy storage systems. As part of this transition, the companies will recall 700 employees who were previously laid off. The plant is expected to begin the production of lithium-iron phosphate batteries in the second quarter of the year. This decision follows workforce reductions implemented in January at both the Tennessee site and a separate facility in Ohio, which were triggered by a deceleration in electric vehicle sales and are expected to last through mid-2026. The move reflects a broader trend among battery producers to find alternative uses for excess manufacturing capacity. While the automotive sector has seen a cooling of demand, the energy storage market is gaining momentum. Industry analysts point to the increasing power needs of artificial intelligence data centers as a primary driver for the growing requirement for high-capacity energy storage solutions.
