LG Energy Solution said it is investing about $70 million to convert part of an existing electric-vehicle battery line to ESS production, with mass production set to start in the second quarter.
Cells made at the Tennessee plant will be supplied through LG Energy Solution’s North American ESS system integration unit, Vertech. The company said the batteries are expected to be used in grid-stabilization projects, renewable energy-linked ESS installations and power infrastructure for AI data centers.
LG Energy Solution said the shift is a strategic move to raise line utilization and improve operating efficiency as growth in the EV market slows. It said converting some EV equipment to ESS production could also strengthen job stability.
Ultium Cells is converting equipment at the Tennessee plant and retraining workers to meet requirements for ESS-grade LFP cell production. The company said 700 employees who were temporarily laid off in January will return to support line construction and new product output.
Park In-jae, head of Ultium Cells, called the move the plant’s first large-scale conversion and said it shows Ultium Cells is evolving into a more diversified battery cell manufacturer. He said the company will upgrade its production system in line with shifts in demand and strengthen its position as a core player and technology leader in the U.S. battery industry.
LG Energy Solution said the conversion gives it a total of five ESS production sites in North America.
An LG Energy Solution official said the company will seek to solidify its leading position in the North American market after securing what it described as an overwhelming level of production capacity in the ESS business.
* This article has been translated by AI.
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