The largest EV battery factory investments in the U.S.

This Intelligence Report 2024 snapshot looks at six battery plants at various stages of development. This is the third of five parts.

Although EV production in North America is slowing as manufacturers contemplate a changing consumer atmosphere, companies are still making large investments in battery factories to prepare for future sales.

Collectively, the auto industry is making battery production investments to satisfy consumer expectations for faster charging times, longer ranges and lower costs, according to Aakash Arora, managing director and partner at Boston Consulting Group,

These new factories are spurred by economic factors and changes in federal policies, Arora said. Local production reduces transportation costs, but more importantly, it makes more vehicles eligible for federal tax credits.

Strict eligibility requirements in the Inflation Reduction Act seek to develop a domestic battery supply chain, while diminishing reliance on China and other foreign adversaries.

Starting this year, EVs became ineligible for a tax credit of up to $7,500 if any of the battery components were made or assembled by a foreign entity of concern, including China, which has dominated the international EV battery supply chain.

Here are some of the most prominent domestic battery production investments in progress.

General Motors has four electric vehicle battery plants in various stages of planning, construction and production with two joint-venture partners.

With LG Energy Solution, GM has invested more than $7 billion in three battery plants under the Ultium Cells banner, producing batteries with nickel cobalt manganese aluminum chemistry.

The first, in Warren, Ohio, began production in 2022 and has an expected annual production capacity of 41 gigawatt-hours, according to the Ultium Cells website. A second, in Spring Hill, Tenn., began shipping its first battery cells in March. A third, near Lansing, Mich., is under construction; its production start date could be early 2025, though an Ultium Cells spokesperson did not confirm the exact timeline. It has an expected annual production capacity of 36 gigawatt-hours, according to a March press release. GM announced plans in June 2023 to construct a fourth battery plant with joint-venture partner Samsung SDI, an estimated $3.5 billion project near New Carlisle, Ind., that could begin production in 2026 with an expected annual production capacity of more than 30 gigawatt-hours.

Hyundai has two battery investments in Georgia. One is the Hyundai Motor Group Metaplant America in Bryan County. The $7.6 billion investment includes a battery plant collaboration with LG Energy that is expected to begin production in the third quarter of 2025 and bring 8,500 jobs to the state. Hyundai teamed up with SK On for a battery manufacturing facility in Bartow County. The $5 billion investment is expected to bring 3,500 jobs to the state and begin production in the second half of 2025. The project has an expected annual production capacity of 35 gigawatt-hours. Both projects will be building lithium ion batteries.

Gotion has invested $2.4 billion into a 3-million-square-foot lithium ion battery production plant near Big Rapids, Mich. The company originally anticipated creating 2,350 jobs with the plant, but after expanding plans in March 2023, an additional 200-300 jobs were announced. The plant has an expected production capacity of 100 gigawatt-hours annually.

Toyota is building a $13.9 billion battery manufacturing complex in Liberty, N.C., to supply lithium ion batteries for battery-electric, hybrid and plug-in hybrid vehicles in North America for Toyota, Lexus and Subaru. The complex will boast seven buildings, each with two production lines dedicated to building batteries. The first batteries are expected to be completed in the first quarter of 2025. The project will employ 5,100 people and will produce 30 gigawatt-hours of batteries per year.

Ford has teamed up with SK On for two lithium ion battery projects: BlueOval SK in Glendale, Ky., and BlueOval City in Stanton, Tenn. The Kentucky project includes a $5.8 billion investment for two battery plants that are expected to create up to 5,000 jobs, although Ford in October announced it was indefinitely delaying one plant. The other is expected to open in 2025.

The Tennessee battery facility will be part of the sprawling BlueOval City complex that includes an EV assembly plant. The total investment there is $5.6 billion, and the battery plant is expected to open in 2025.

Another project, BlueOval Battery Park in Marshall, Mich., is again under construction after a roughly two-month pause last year amid tense contract negotiations with the UAW. However, Ford has downsized its plans. The project is now expected to create 1,700 jobs, down from the initial announcement of 2,500. Planned capacity of the lithium iron phosphate batteries has been cut by more than 40 percent to 20 gigawatt-hours annually. And total investment in the plant has been reduced to roughly $2.2 billion from an initial $3.5 billion.

LG is investing $5.5 billion into a battery manufacturing campus in Queen Creek, Ariz. The complex's two facilities are expected to begin producing 46-series batteries in 2026, and have a production capacity of 36 gigawatt-hours annually. This marks LG's first cylindrical and energy storage system battery plant in North America.

Stellantis is investing $6.3 billion into two EV battery factories in Kokomo, Ind. The two projects are a joint venture between Stellantis and Samsung SDI that will produce lithium-ion batteries. The first project, expected to start production in 2025, will have a production capacity of 23 gigawatt-hours. The second project is expected to start production in 2027 with a capacity of 34 gigawatt-hours. The projects are expected to bring a combined 2,800 jobs to the area.

An earlier version of this article misstated the Arizona location of the LG Energy Solution battery plant.