GM to consider excluding LFP batteries from future EV strategy, focusing on LMR technology

*This content was translated by AI.

General Motors (GM) is considering not adopting lithium iron phosphate (LFP) battery technology, which has gained attention as a low-cost battery option, in its upcoming electric vehicle (EV) lineup.

While Chinese automakers have rushed to adopt LFP batteries, establishing them as the mainstream choice, most global automakers in North America and Europe hold a different view. Unlike the trend of adopting LFP batteries to reduce EV manufacturing costs, GM is prioritizing alternative technologies it is developing in-house.

Kurt Kelty, head of GM's battery technology division, stated in an interview with Reuters that the company is prioritizing battery technology based on lithium-manganese-rich (LMR) chemistry over LFP batteries. LMR batteries can maintain unit costs similar to LFP batteries when produced in the U.S., while delivering energy density comparable to high-nickel batteries. In other words, they are regarded as a "game changer" that can secure driving ranges equivalent to NCM batteries (over 80 km more than LFP) at the price of LFP.

Under the original plan, GM intended to begin full-scale production of LFP battery cells for EVs at its joint venture plant in Tennessee, U.S., starting in late 2027. However, Kelty explained that LFP cells beginning production at the Tennessee plant this month will be supplied exclusively to the "energy storage system (ESS)" sector, not for electric vehicles. He added that there is a possibility that LFP batteries will not be installed in GM's future vehicle lineup, and that the core battery architecture for GM's mass production will be LMR technology.

GM has been researching and developing LMR battery chemistry for over a decade. GM's original goal was to begin commercial production of LMR cells at its U.S. manufacturing facilities by 2028. While Kelty did not confirm whether this timeline remains unchanged, he noted that the LMR-related development process is progressing smoothly as planned. However, according to S&P Global, while LMR batteries offer the advantage of reducing dependence on critical minerals, technical challenges such as battery degradation (performance decline over time) remain, leading some analysts to caution that large-scale market adoption may not occur in the near term.

Currently, major competitors such as Tesla, Rivian, and Ford are actively adopting LFP batteries to respond to slowing EV demand in the U.S. and secure price competitiveness for entry-level EV models. GM also recently supplied and installed LFP cells from Chinese battery maker CATL in its most affordable EV model launched in the U.S. market, the "new Chevrolet Bolt."

As GM has historically built its EV lineup in the North American market around high-performance batteries with high nickel content, whether it will completely shift to LMR and exclude LFP in its next-generation entry-level EV strategy is expected to become a key variable in the future battery supply chain market.

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*This content was translated by AI.