en.Wedoany.com Reported - LG Energy Solution is partnering with General Motors to convert an electric vehicle battery production line in Holland, Michigan, USA, into a facility for producing batteries for energy storage systems. This conversion was completed in early May 2025, making the plant the first in the United States to mass-produce lithium iron phosphate batteries. An opening ceremony was held on June 24, 2025. Jaehong Park, CEO of LG ES Vertech, stated that significant effort is required for the battery design needed for energy storage systems, which demands high capacity and long cycle life.

Simultaneously, Ultium Cells, the joint venture between LG Energy Solution and General Motors, is upgrading its plant in Spring Hill, Tennessee, to produce lithium iron phosphate batteries for energy storage systems. According to a report from July 2025, this conversion aims to expand lithium iron phosphate battery production capacity, with commercial production expected by the end of 2027. Affected by the slowdown in electric vehicle demand, Ultium Cells laid off approximately 700 employees in January of this year. However, with the shift to energy storage battery production, these employees are expected to be recalled.

Additionally, LG Energy Solution has reached a $4.3 billion supply agreement with Tesla to build a new lithium iron phosphate battery plant in Lansing, Michigan, expected to be operational in 2027. This plant will supply batteries for Tesla's Megapack 3 battery energy storage system in Houston, Texas. Samsung SDI has also announced a $1 billion agreement to supply batteries for energy storage systems to a U.S. energy developer and is in negotiations with Tesla regarding a battery supply contract.

This trend reflects Korean battery manufacturers adjusting their production strategies in the United States, converting electric vehicle battery plants into facilities dedicated to energy storage systems or building new ones. This shift is influenced by changes in electric vehicle demand and is also driven by the U.S. Inflation Reduction Act and related policies. Furthermore, the United States and South Korea are reviewing the Critical Minerals Memorandum of Understanding through the U.S. Department of Energy to strengthen cooperation in the critical mineral supply chain.

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