Aiming to become the first auto manufacturer to deploy LMR batteries in electric vehicles (EVs), US-based multinational GM has created a joint venture, Ultium Cells, with the South Korean battery manufacturer LG Energy Solution. The new venture plans to start commercial production of LMR prismatic cells in the US by 2028. Pre-production is expected to begin at an LG Energy Solution facility by late 2027.  

Battery cathodes require critical elements like cobalt, nickel and manganese, with cobalt being the most expensive. LMR battery cells are said to use a higher proportion of more affordable manganese, while also delivering greater capacity and energy density than lithium-ion alternatives, state the partners. They claim the new LMR prismatic battery cell will provide ‘33% higher energy density compared to the best-performing lithium iron phosphate (LFP) based lithium-ion cells – at a comparable cost’.

GM’s electric trucks currently use batteries based on high-nickel chemistry. However, by ‘integrating LMR battery technology and the manufacturing and space efficiency benefits of prismatic cells’, the company says it aims to offer ‘more than 400 miles of range in an electric truck while achieving significant battery pack cost savings compared to today’s high-nickel pack’.

These are the first-ever LMR prismatic cells for EVs, according to Wonjoon Suh, Executive Vice President and Head of the Advanced Automotive Battery Division at LG Energy Solution.  

Kurt Kelty, Vice President of Battery, Propulsion and Sustainability at GM, says the the LMR batteries will be offered alongside the company’s ‘high-nickel and iron-phosphate solutions, expanding customer choice in the truck and full-size SUV markets.’

A note of caution

Commenting on the announcement, Dr Kai Yang, Lecturer in Energy Materials & Nanotechnology at the University of Surrey, in the UK, agreed that LMR cathodes offer much higher energy density than current nickel cobalt aluminium (NCA), nickel cobalt manganese (NCM) and LFP batteries, while reducing reliance on expensive cobalt, ‘making them a strong candidate for next-generation EVs’.

However, he warns that their high-voltage operation can trigger oxygen release, leading to structural degradation, electrolyte decomposition, voltage fade and reduced energy/power density. ‘These issues not only limit battery health but also raise safety concerns,’ he says.

Yang notes that while advances in material design are ‘promising’, wide adoption will also depend on intelligent battery sensing to monitor degradation in real time and ensure safe, stable operation. ‘A 2028 rollout is possible in niche markets, but broader use requires further breakthroughs in stability and interfacial-related issues,’ he says.

China regains number one spot in lithium-ion battery supply chain ranking  

In related news, BloombergNEF (BNEF) reports that China has overtaken Canada for the top spot in its latest global lithium-ion battery supply chain ranking (see Table 1).

China’s low commercial electricity prices and advancing infrastructure were primary factors in its reclaiming the top spot in 2024. ‘While Canada remains a raw materials powerhouse and continues to offer a stable investment environment, slower progress on scaling battery manufacturing weakened its advantage,’ comments BNEF.

The US joined Canada in second place, having been bolstered last year by the Inflation Reduction Act (IRA). However, President Donald Trump’s tariffs and the rollback of climate-related ambitions threaten to undo its progress by raising costs for US-based manufacturers, diverting investment away from the US toward other regions and reducing domestic demand, it warns.

Ellie Gomes-Callus, BNEF Metals and Mining Associate, adds: ‘Brazil and Indonesia registered the largest gains in the fifth edition of the ranking. Growth across these emerging markets has been driven by surging demand and ambitious policy roadmaps. However, all eyes will be on the US this year, as it awaits the impact of the Trump administration’s trade policies.’

Some established markets – namely Japan and South Korea – also improved their positions in 2024, climbing further into the top 10. Like China, Japan and South Korea were early movers in the battery supply chain. This experience has enabled them to maintain – or even improve – their performance across the five categories in the ranking, despite navigating increasingly difficult market conditions including global oversupply, shrinking profit margins and escalating trade tensions.

Meanwhile, Europe’s battery supply chain potential showed ‘signs of regression’, according to the analysis. Of the 11 European countries in the ranking, only two – the Czech Republic and Turkey – improved, while five held their positions and four declined. The two biggest declines were European: Hungary and Finland dropped seven and six spots to 21st and 11th, respectively.  

Hungary’s performance across social and governance categories slipped to become the second-last in the region, while Finland was held back by its stagnant cobalt and nickel industries as well as its complicated permitting processes, explains BNEF.  

Chemical giant BASF’s battery component plant in Harjavalta, Finland, has been held up by permitting-related difficulties. ‘Without renewed momentum and targeted intervention to address industrial barriers like permitting and high operational costs, the formerly promising region risks losing ground to faster-moving emerging markets,’ concludes BNEF.

Table 1: Breakdown of global lithium-ion battery supply chain ranking in 2024

Source: BloombergNEF, Global Lithium-Ion Battery Supply Chain Ranking, 5th edition, May 2025