GM bets on lithium iron phosphate: the global battery chemical system is undergoing transformation

Against the backdrop of the continuous expansion of the European and American electric vehicle markets and increasing cost pressures, Ultium Cells, a joint venture between General Motors and LG Energy Solution, announced that it will add a lithium iron phosphate (LFP) battery production line at its Spring Hill plant in Tennessee as an important step in its strategy to reduce costs and expand popularity.

LFP has been pushed back to the forefront due to its advantages such as safety, low cost and durability, and the Chinese government’s export restrictions on key positive electrode material preparation technologies are accelerating the differentiation of the global battery supply chain at the technical and strategic levels.

01 Switching from high nickel to LFP: a shift in general battery strategy

At a time when traditional NMC (nickel-cobalt-manganese) batteries are facing controversy due to their high cost and environmental sensitivity, LFP batteries have been selected by GM as the main technical solution for popular electric vehicles due to their low raw material cost, high safety and long cycle life.

GM plans to complete the transformation of the LFP battery assembly line by the end of 2027 and achieve localized production at its Tennessee plant.

The first models to be equipped include the next-generation Chevrolet Bolt EV and some configurations of the Silverado EV. The goal is to achieve a cost reduction of $6,000 per vehicle, which will be a substantial boost to the affordable electric vehicle market.

The positive electrode material used in LFP batteries is lithium iron phosphate (LiFePO), which has high thermal stability and can maintain a relatively low temperature rise curve even in the event of thermal runaway of the battery. This is its biggest safety advantage over NMC.

While its theoretical energy density is lower than that of NMC, LFP battery packs can approach or even achieve 300Wh/kg performance through structural optimization (such as the module-less CTP architecture), system integration, and vehicle lightweighting. From a durability perspective, LFP typically boasts a cycle life exceeding 3,000 cycles, significantly higher than NMC systems.

GM doesn’t simply view LFP as a battery type reserved for low-end products. For example, the Silverado EV equipped with LFP still achieves a range of 563 kilometers, far exceeding the range stereotype of traditional LFP. This is due to optimizations at the battery system level, including cell arrangement and thermal management system design, as well as continuous improvements in electric drive efficiency.

Furthermore, GM is also developing the next generation of lithium batteries in parallel. Lithium manganese-rich (LMR) batteries are one of the key technologies that GM plans to use in full-size pickup trucks and SUV models after 2028. Their characteristics are that while retaining a certain high nickel energy density, they reduce material costs and thermal runaway risks through a high manganese ratio.

Research on silicon-based negative electrodes focuses on improving the energy density of single cells. Its theoretical capacity far exceeds that of traditional graphite negative electrodes, but how to solve problems such as high expansion rate and short cycle life remains a current technical difficulty.

GM’s choice of the LFP route is not only driven by cost, but also reflects its judgment on the changes in the electric vehicle market structure.

While electric vehicle penetration is increasing in the North American market, mainstream consumers remain highly price-sensitive, particularly those in lower-tier cities and those purchasing entry-level models. In contrast, the cost-reduction potential of LFP batteries opens up a wider market for GM.

From the technical details, the advantages of LFP lie in its structural stability and high cycle life. Its iron-phosphorus-oxygen tetrahedral crystal structure can still maintain good capacity retention under high temperature and long-term use.

In terms of safety, LFP’s inherently low oxygen content makes it less likely to cause a violent reaction even in the event of thermal runaway. Furthermore, LFP contains no cobalt or nickel, thus avoiding the price fluctuations and geopolitical risks associated with critical minerals amidst global resource constraints.

While its energy density is slightly lower than that of NMC, LFP battery packs, through their modular CTP (Cell to Pack) design, flexible cooling system, and large cell layout, can still achieve a range of over 500 kilometers per vehicle, meeting the needs of most urban commutes and medium-distance travel. LFP battery packs are particularly suitable for larger vehicles like SUVs and pickup trucks, where ample chassis space is available.

02 Challenges of LFP’s independent route amidst the intensified technological barriers between China and the United States

As GM and LG Energy Solution promote the localization of LFP, China has imposed export restrictions on battery positive electrode material technology. In July 2024, the Chinese government added an export ban on battery positive electrode material preparation technology including lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP).

This type of technology control is not aimed at physical materials, but rather restricts the export of know-how such as core process methods, formulas, and process parameters. Its essence is a further strengthening of “technological sovereignty.”

China leads the world in the industrial maturity and patent coverage of LFP technology.

CATL , BYD , Gotion, and Phylion have not only mastered advanced synthesis pathways and particle size control capabilities, but have also accumulated extensive engineering experience in precursor purity control, carbon coating technology, particle monodispersity, and sintering temperature control.

These technical barriers mean that even if overseas companies have the raw materials and equipment, it is difficult to quickly replicate China’s existing high-performance LFP production system.

For GM and LG Energy Solution, achieving local conversion of LFP batteries despite the ban requires building a complete technology pipeline independent of the Chinese system. This involves developing their own synthesis technology and matching and debugging upstream and downstream equipment.

For example, whether spray granulation furnaces, solid-phase sintering kilns, wet coating equipment, etc. can support the consistency control of local raw materials, the selection of raw materials has become more critical, especially the source and quality of raw materials such as high-purity iron phosphate, lithium source and coated carbon source will directly determine the performance of the battery cell.

China’s control over the export of battery positive electrode material technology has strengthened the strategic attributes of LFP technology.

While GM and LG Energy Solution possess production line integration capabilities and engineering manufacturing foundations, they face gaps in key processes and accumulated experience. They must gradually fill these gaps in independent R&D, raw material selection, and equipment commissioning. This process means that the successful implementation of a localized LFP industry chain in North America will be a medium- to long-term challenge.

summary

GM’s bet on LFP is not only an option to reduce costs and improve efficiency, but also a part of building the long-term competitiveness of electric vehicles.

From product strategy to process path, from platform transformation to localized assembly, the goal is to build a battery technology portfolio that covers diverse user groups, laying the foundation for the next phase of electrification competition. At the same time, the trend of technological decoupling between China and the United States and export controls on materials and technology have added considerable uncertainty to this path.

In an era where battery costs dominate vehicle prices and battery safety is related to brand reputation, independently mastering battery manufacturing capabilities, process technology and supply chain organization capabilities is becoming a basic foundation that global automakers cannot avoid.