Ultium Cells LLC announced Tuesday it will invest $1 billion to upgrade and diversify its battery cell manufacturing operations at its Spring Hill facility, with the expansion expected to create 500 new jobs.
The company said that the facility will be upgraded to produce lithium manganese-rich (LMR) prismatic battery cells for future GM electric vehicles. The project is expected to make the Spring Hill facility the first in the world to mass-produce prismatic LMR battery cells.
According to Ultium Cells and the Tennessee Department of Economic and Community Development (TNECD), LMR technology could provide 33 percent greater energy density than lithium iron phosphate (LFP) batteries while maintaining a comparable cost. LFP is currently considered the leading affordable battery chemistry.
@UltiumCells is retooling and diversifying its Spring Hill, Tennessee, battery cell manufacturing operations.
Through the project, the company will invest an additional $1 billion in the facility, which is expected to be the first in the world to produce prismatic lithium…
— TNECD (@TNECD) September 29, 2026
Construction and facility modifications are expected to begin later this year and be completed in 2028. Ultium Cells said the expansion will add 500 jobs to its current Spring Hill workforce of about 1,200 employees.
The company said the combined investment in the LMR program, its LFP production program and facility improvements will reach $1 billion by 2030.
The latest upgrade builds on Ultium Cells’ expansion into multiple battery chemistries and manufacturing formats. The company began producing LFP cells for energy storage systems for LG Energy Solution Vertech customers at the Spring Hill facility in June 2026.
Once the upgrades are complete, the facility will be able to produce high-nickel, LFP, and LMR battery cells in both pouch and prismatic formats, according to the company.
GM Vice President of Battery and Sustainability Kurt Kelty said the LMR production capability will allow GM to match battery technology to customer needs.
“High-nickel batteries will continue to give customers the highest range in our portfolio, while adding LMR positions us to leapfrog today’s more affordable chemistries and deliver lower costs with better performance,” Kelty said.
Ultium Cells President Injae Pahk called the announcement the company’s “second major investment in Spring Hill,” saying the company is evolving its production to meet changing market demands.
The development follows Ultium Cells’ July 2025 announcement that it planned to shift production at Spring Hill toward lower-cost LFP battery cells. At the time, the company said the move would diversify GM’s battery portfolio and expand its ability to produce multiple chemistries.
GM and LG Energy Solution initially announced their Spring Hill joint venture in 2021, with a planned investment of more than $2.3 billion and 1,300 jobs. In 2022, the companies announced another $275 million investment and 400 additional jobs.
Governor Bill Lee said the latest investment demonstrates Ultium Cells’ continued confidence in Tennessee’s workforce.
“Ultium Cells’ continued investment in Spring Hill underscores Tennessee’s role as a hub for advanced manufacturing and technological innovation,” Lee said. “I thank Ultium Cells for their commitment to create new, high-quality jobs and to reinforce the strength of Tennessee’s manufacturing economy as we advance toward a future focused on clean, reliable energy.”
TNECD Commissioner Stuart McWhorter also said the additional billion-dollar investment signals “confidence in our efforts to make Tennessee the best place to live, work and raise a family.”
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
