Ultium Cells BESS Production, $2.6 B Michigan Plant, 50 GWh Tennessee Capacity, and 3 Major Projects (2024 to 2026)

North America Battery Plant Projects Signal Shift from Planning to Execution

Industrial policy, particularly the U.S. Inflation Reduction Act (IRA), has fundamentally shifted battery manufacturing from a long-term goal to an urgent, large-scale industrial project, moving the sector beyond announcements in the 2021-2024 period to active construction and initial production from 2025 onward.

• The period from 2025 is defined by accelerated construction and capital deployment, with announced investments in North American cell and module manufacturing exceeding $112 billion, a stark contrast to the planning and site selection phase of previous years.
• This strategic shift is marked by automakers forging direct joint ventures to secure domestic supply, such as the Ultium Cells partnership between General Motors and LG Energy Solution, and the Blue Oval SK venture between Ford and SK On.
• The focus on localization aims to build integrated North American supply chains, reducing the acute reliance on Asian imports that characterized the market before 2024.
• A key development is the diversification of battery chemistry; companies like Samsung SDI and Ultium Cells are now incorporating Lithium-Iron-Phosphate (LFP) production into their U.S. facilities to lower costs and mitigate risks associated with cobalt and nickel supply chains.

$112 B in Capital, Automaker JVs Dominate North American Battery Investment

North America has become the primary destination for non-Chinese battery investment, with South Korean firms leading capital deployment through massive joint ventures with legacy automakers, directly catalyzed by IRA production and investment tax credits.

• The scale of investment is demonstrated by multi-billion-dollar projects, including the $11.4 billion Blue Oval SK commitment in Kentucky and Tennessee, and the multiple Ultium Cells plants, each representing investments of over $2.5 billion.
• These investments are not speculative but are strategically tied to long-term offtake agreements, with the factories designed to supply specific, high-volume electric vehicle platforms for their automaker partners.
• The financial structure of these projects is heavily de-risked by federal incentives, including the IRA’s Advanced Manufacturing Production Credit, which provides tangible financial support for every cell and module produced domestically.
• Chinese firms are also establishing a U.S. presence despite geopolitical friction; Gotion High-Tech‘s planned $2 billion plant in Illinois highlights efforts to participate in the North American supply chain, although these projects face significant political and regulatory scrutiny.

Partnership Data Shows JVs are the Dominant Model for Battery Gigafactories

The dominant partnership model for building battery capacity outside of China is the joint venture (JV) between established battery manufacturers and legacy automakers, a structure designed to share capital risk, combine manufacturing expertise with market access, and meet local content requirements for incentives.

• The GM and LG Energy Solution Ultium Cells JV serves as the primary template, with the partnership building a network of gigafactories across the U.S. to create a vertically integrated supply for GM‘s EV lineup.
• This model has been replicated across the industry, with Ford and SK On forming the Blue Oval SK venture and Stellantis establishing separate JVs with both Samsung SDI and LG Energy Solution to diversify its battery supply.
• Even Chinese battery giant CATL, while facing hurdles in the U.S., is using a JV model with Stellantis to build a plant in Spain, demonstrating the global prevalence of this collaborative structure.
• These partnerships extend beyond cell manufacturing into the supply chain, with automakers and battery companies co-investing in raw material processing and recycling to build a more resilient and localized ecosystem.

Table: Key Battery Manufacturing Joint Ventures Outside China

US Midwest “Battery Belt” Emerges as Global Production Hub

A distinct “Battery Belt” has formed in the U.S. Midwest and Southeast, strategically located to supply the region’s established automotive manufacturing hubs, while Canada and Mexico are emerging as critical nodes in a more resilient and integrated North American supply chain.

• Between 2021 and 2024, the primary geographic activity was competitive site selection, with states like Michigan, Ohio, Kentucky, and Tennessee offering significant incentive packages to attract gigafactory investments.
• From 2025 onward, this region has transformed into a massive construction zone, with a geographic cluster of battery plants forming a corridor from Michigan down to Georgia, mirroring the existing automotive industry footprint.
• Canada is securing a key role in the ecosystem with projects like Northvolt’s planned 30 GWh gigafactory in Quebec, leveraging its abundant clean energy and proximity to critical mineral resources.
• Mexico is solidifying its position in vehicle assembly and component manufacturing, highlighted by BMW’s high-voltage battery assembly plant in San Luis Potosi and Panasonic‘s expanding production in the country.

LFP Chemistry Adoption Accelerates as Market Focuses on Scale and Cost

While conventional Nickel-Manganese-Cobalt (NMC) lithium-ion technology underpins the first wave of gigafactories, a rapid strategic pivot towards Lithium-Iron-Phosphate (LFP) chemistry is underway to reduce costs and supply chain risks, indicating a maturing market focused on mass-market EV adoption.

• The 2021-2024 period was dominated by plans for high-energy-density NMC batteries, tailored for the performance and range requirements of early premium EV models.
• By 2025-2026, a clear shift is visible, with major producers including Samsung SDI and Ultium Cells announcing dedicated LFP production lines in the U.S., aimed at supplying more affordable EVs and reducing exposure to volatile cobalt and nickel prices.
• The technology being deployed is commercially proven, with the primary challenge shifting from chemistry innovation to manufacturing execution at an unprecedented scale and speed.
• A parallel track of innovation continues with Panasonic‘s focus on advanced cylindrical cells for partners like Tesla, targeting improvements in energy density, cost, and manufacturing efficiency within a mature format.

Scenario Modeling: Upstream Supply Chain is the Critical Bottleneck for 2026

The critical factor to watch in 2026 is whether the upstream supply chain for critical minerals can scale as fast as the cell manufacturing plants; any mismatch will create a major bottleneck that jeopardizes production targets and the financial viability of multi-billion-dollar factory investments.

• If permitting and development of North American lithium, graphite, and nickel sources accelerate through 2025, the $112 billion in factory investments are positioned to meet their production schedules and fulfill automaker offtake agreements.
• The key signal to monitor is announcements of new domestic or allied-shore processing facilities for battery-grade materials, as refining capacity represents the most significant weak link in the nascent North American supply chain.
• Conversely, if gigafactories like the Ultium Cells plant in Tennessee are forced to operate at low capacity due to raw material shortages, it will validate concerns that IRA-fueled manufacturing ambitions have outpaced the development of the underlying resource supply chain, leading to potential project delays and significant cost overruns.

The questions your competitors are already asking

This report covers one angle of the North American battery gigafactory build-out. The questions that matter most depend on your work.

• Map of US battery factories under construction
• Which companies are building LFP battery plants in the US
• New US lithium and graphite mining projects
• Timeline for GM Ford Stellantis US battery production

This report does not answer these. Enki Brief Pro does.

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