GM Invests $1B in First Mass-Produced Manganese-Rich Battery Cells
The Tennessee plant will pioneer prismatic lithium manganese-rich cells for electric vehicles by 2028.
1Pioneering battery chemistry
GM and LG Energy Solution are transforming their Spring Hill plant into the world's first mass-production facility for prismatic lithium manganese-rich (LMR) cells. This $1B investment builds on previous commitments of $2.3B in 2021 and $275M in 2022. The new cells contain significantly less cobalt and nickel while increasing manganese content, promising 33% higher energy density than lithium iron phosphate at comparable costs.
2Strategic production timeline
Construction begins later this year with completion targeted for 2028, coinciding with the planned launch of GM's first vehicles using these batteries. The Spring Hill facility already produces lithium iron phosphate cells, but for energy storage applications rather than automotive use. This marks GM's first specific site commitment for manganese-rich battery production, complementing their existing pilot line in Warren, Michigan that produces 2,500 cells daily.
3Vehicle application strategy
GM intends these high-density batteries primarily for full-size pickups and large SUVs, targeting ranges exceeding 400 miles. The company's battery chief Kurt Kelty has expressed skepticism about lithium iron phosphate chemistry, suggesting it may never enter GM's vehicle portfolio. This positions manganese-rich cells as GM's primary path for electrifying its larger vehicle segments.
4Diverging regional strategies
While GM bets on energy-dense manganese cells, European automakers are investing heavily in lithium iron phosphate technology. Volkswagen recently sold 49% of its Spanish battery venture to Gotion for this purpose, while Stellantis and CATL are building 50 GWh capacity in Zaragoza. This reflects differing market needs - Europe prioritizes cost for smaller vehicles, while GM focuses on density for larger models.
5Material supply challenges
The European Commission reports complete dependence on imports for battery-grade manganese, with 96% reliance for extraction and 66% for processing. Demand is forecast to reach 74,000 tonnes by 2030. While LG's research shows the cells retain 92.2% capacity after 883 cycles, addressing durability concerns, sourcing sufficient manganese remains an open question for large-scale production.
6Regulatory and production hurdles
GM's battery plans have faced obstacles, including a seven-month shutdown at their Ohio plant after US tax credit withdrawals. Manganese's classification as a strategic raw material under the Critical Raw Materials Act adds complexity. The shift from cobalt to manganese would reduce one European dependency while increasing another, creating new supply chain considerations.
7Competitive landscape
No European plants have announced plans to produce manganese-rich cells, leaving GM and LG with potential first-mover advantage in this chemistry. The technology could differentiate GM's electric trucks and SUVs in a market where range remains a key consumer concern. However, success depends on solving material sourcing challenges and maintaining cost competitiveness.
8Strategic implications
GM's $1B bet on manganese-rich cells represents a calculated gamble on energy density over cost reduction. If successful, it could give GM's large electric vehicles a significant range advantage. However, the 2028 timeline leaves room for competing technologies to advance, and material dependencies introduce geopolitical risks to the supply chain that could impact production scalability.
Original article: The Next Web — GM Invests $1B in First Mass-Produced Manganese-Rich Battery Cells