Stock Markets June 10, 2026 02:46 PM

GM Reconsiders LFP Batteries, Shifts Focus to LMR Chemistry

Company signals possible move away from lithium-iron phosphate as it advances lithium manganese-rich development

By Leila Farooq
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General Motors is signaling a potential retreat from using lithium-iron phosphate (LFP) batteries in future electric vehicles, according to comments from the automaker's head of battery technology. GM said it will concentrate on lithium manganese-rich (LMR) chemistry, which the company says stores more energy at similar cost to LFP when produced in the United States. A Tennessee plant will begin producing LFP cells this month for energy storage systems, but GM may not deploy LFP in its EV lineup.

GM Reconsiders LFP Batteries, Shifts Focus to LMR Chemistry
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Key Points

  • GM is shifting emphasis from LFP to LMR battery chemistry and may not deploy LFP in its EV lineup.
  • A Tennessee plant will start producing LFP cells this month, but those cells are for energy storage systems, not vehicles.
  • GM says LMR and LFP cost about the same to produce in the U.S., while LMR offers higher energy density; LMR development is reportedly on schedule.

General Motors is re-evaluating its plans to deploy lithium-iron phosphate batteries in passenger electric vehicles and is instead emphasizing lithium manganese-rich chemistry as its primary path forward, the automaker's head of battery technology said. GM had previously announced intentions to develop LFP batteries and to begin manufacturing them at a jointly owned Tennessee facility in late 2027, but senior company comments indicate a shift in strategy.

Kurt Kelty, GM's head of battery technology, told reporters that the company is prioritizing lithium manganese-rich, or LMR, chemistry. GM has described LMR as roughly cost-comparable to LFP for U.S. production while offering greater energy storage for the same weight and volume. Kelty said that LMR could become the "workhorse" chemistry for GM and that there is a possibility that LFP will not be integrated into GM's EV portfolio.

At the same time, Kelty confirmed that the Tennessee plant will start producing LFP cells this month, but he clarified those cells are intended for energy storage systems rather than for EV propulsion packs. That detail leaves the future role of LFP within GM's vehicle lineup uncertain despite earlier announcements about developing LFP for future models.

GM has been developing LMR chemistry for over a decade, according to company statements. The automaker has previously set a goal of beginning commercial production of LMR cells at a U.S. facility in 2028. Kelty did not explicitly reconfirm whether that 2028 commercialization target remains unchanged, but he said that LMR development is "on schedule."

Industry peers have also been exploring LMR chemistry. Ford Motor said last year it was working to scale LMR for eventual use in EVs. The move away from LFP, if finalized, would mark a notable divergence from choices made by many competitors. Chinese manufacturers led the adoption of LFP cells because the chemistry is lower cost, safer, and considered durable, albeit less energy-dense, which translates into shorter driving ranges compared with nickel-rich alternatives.

Automakers including Tesla, Rivian and Ford have added LFP-based models to lower costs and provide more affordable battery-electric options as U.S. EV demand growth has moderated. GM, which has introduced more than a dozen U.S. EV models in recent years using nickel-rich chemistry, has used LFP cells in at least one lower-priced model. Media reports have said the recently launched Chevrolet Bolt uses LFP cells supplied by Chinese battery maker CATL.

GM has framed LMR as offering an attractive balance between cost and energy density for vehicles produced in the United States. The company says LMR costs about the same as LFP to manufacture domestically while delivering more energy at equivalent weight and size. Kelty indicated that GM expects to allocate its highest production volumes to LMR if development continues on its current schedule.

Despite the potential advantages, industry analysis has highlighted technical challenges associated with LMR chemistry. Reports have noted issues such as degradation with use, which could slow large-scale adoption. Those technical limitations mean mass implementation of LMR is not guaranteed in the near term.

For now, GM's public statements leave open both the continued production of LFP cells for non-vehicle applications and the prospect that LFP might not be adopted for its EVs. The company continues to pursue LMR development while maintaining production activity tied to LFP for energy storage systems.


Key points

  • GM may not use LFP battery chemistry in future EVs and is prioritizing LMR as its main battery chemistry.
  • A Tennessee factory will begin producing LFP cells this month, but those cells are destined for energy storage systems rather than EVs.
  • GM says LMR costs about the same as LFP to make in the U.S. while offering higher energy density; LMR development is reported to be on schedule.

Risks and uncertainties

  • Technical challenges with LMR chemistry, including potential weakening with use, may delay or limit mass adoption - impacts battery manufacturers and EV production timelines.
  • Uncertainty remains on whether GM will follow its previously stated timeline to begin commercial LMR production in 2028 - impacts supply chain planning and domestic cell manufacturing investments.
  • If GM forgoes LFP for EVs, it would diverge from many competitors that have adopted LFP to reduce costs, creating competitive and market-structure implications for automakers and battery suppliers.

Risks

  • Technical issues with LMR, such as degradation with use, could limit large-scale adoption and affect EV performance and lifecycle costs.
  • Unclear timing for commercial LMR production could disrupt supply-chain and manufacturing plans tied to 2028 targets.
  • Abandoning LFP for EVs would mark a departure from competitors using LFP to lower vehicle costs, affecting market competitiveness and supplier demand.

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