Ultium Cells to Invest $70M in Tennessee LFP ESS Conversion, Rehire 700
Ultium Cells will invest $70 million to convert its Spring Hill, Tennessee plant to produce LFP battery cells for energy storage starting Q2 2026, restoring 700 workers laid off in January. The JV will supply these cells to LGES Vertech for grid-scale and data centre ESS applications in North America.
1. Conversion of Production Lines
Ultium Cells is allocating $70 million to retool its Spring Hill, Tennessee facility for manufacturing lithium iron phosphate (LFP) battery cells tailored to stationary energy storage systems, with operations set to commence in Q2 2026. The upgraded lines will support the JF2 LFP pouch cell format and retain flexibility for additional chemistries based on demand shifts.
2. Workforce Rehiring and Training
The production shift will bring back approximately 700 employees who were laid off in January 2026, with current retraining programs focused on ESS cell assembly and quality control. Workforce onboarding is scheduled to complete ahead of the planned Q2 2026 launch, ensuring seamless ramp-up of operations.
3. Supply and Strategic Network Expansion
Under the joint venture framework, Ultium Cells will deliver LFP cells to LGES Vertech for integration into large-scale grid and data centre enclosures across North America. The Spring Hill site will join a regional manufacturing network—including facilities in Michigan and Ontario—that aims to exceed 60 GWh of ESS battery output by the end of 2026.