Ultium Cells, the U.S.-based joint venture between LG Energy Solution and General Motors (GM), has paused construction of its third electric vehicle (EV) battery plant in Michigan due to a temporary decline in global EV demand. Industry sources revealed that the plant, initially set to begin operations in 2025, will now see its completion delayed beyond that year.
The construction halt affects three of the five production lines, with only two lines partially equipped. This delay disrupts Ultium Cells’ original goal to start first-phase volume production early next year and reach an annual output of 50 gigawatt hours (GWh), capable of powering approximately 700,000 high-performance EVs.
This decision follows a similar move by LG Energy Solution in June, when it suspended the construction of a lithium iron phosphate (LFP) battery plant in Arizona just two months after breaking ground.
The shift in timelines reflects broader industry challenges, including fluctuating demand and supply chain issues. As the EV market experiences these fluctuations, manufacturers like Ultium Cells are adjusting their strategies to align with current economic realities and market forecasts.
