General Motors and LG Energy Solution are restarting battery cell production at their Ultium Cells plant in Warren, Ohio, after a seven-month shutdown caused by weaker-than-expected demand for electric vehicles.
Production is scheduled to resume next week, with around 1,400 employees expected to return to the facility. The restart signals a shift in GM and LG Energy Solution’s U.S. battery strategy as EV demand begins to show signs of recovery while some battery capacity is increasingly being redirected toward stationary energy storage.
Ultium Cells Ohio Restarts Production
The Ohio facility stopped producing battery cells in January 2026 after a sharp slowdown in U.S. EV demand. Approximately 1,330 workers were laid off when the plant was idled.
The shutdown was initially expected to last about six months, but the production pause extended by roughly another month. A small number of employees returned in May to prepare the facility for a possible restart.
Now, the factory is preparing to bring its assembly lines back online, according to Ultium Cells Vice President of Operations Tom Gallagher, as reported by Reuters.
The plant produces large-format nickel-cobalt-manganese-aluminum (NCMA) pouch cells used in most of GM’s electric vehicles. With production restarting, the facility is expected to return to a workforce of approximately 1,400 employees.
The Chevrolet Bolt is an exception. Its upcoming LFP battery system uses cells sourced from China rather than the NCMA cells produced at the Ohio Ultium Cells facility.
EV Battery Demand Is Showing Signs of Recovery
GM’s decision to resume battery production comes after a difficult period for the U.S. electric vehicle market.
EV sales surged during the final quarter of 2025 as buyers rushed to purchase vehicles before the federal $7,500 EV tax credit expired. Demand subsequently fell sharply once the incentive was removed.
The first quarter of 2026 was particularly challenging for the EV industry, but the market has shown signs of improvement during the second quarter. Chevrolet and Cadillac were among the GM brands reporting meaningful gains.
That recovery is helping create a stronger case for restarting domestic battery production, particularly for vehicles that rely on the Ohio-made cells.
GM also temporarily idled its Detroit EV factory during the Ohio battery plant shutdown, limiting production of models including the GMC Hummer EV, GMC Sierra EV and Cadillac Escalade IQ.
GM and LGES Are Diversifying U.S. Battery Production
While battery production is returning to Ohio, GM and LG Energy Solution are taking a different approach at their second Ultium Cells facility in Spring Hill, Tennessee.
The companies are investing approximately $70 million to convert production capacity at the Tennessee plant for stationary energy storage systems. The facility is expected to manufacture lower-cost lithium-iron-phosphate (LFP) cells for EV applications by late 2027 as part of a broader diversification strategy.
The shift reflects changing demand across the battery market. LG Energy Solution is expanding its energy storage business to offset weaker-than-expected EV battery demand and plans to increase global energy storage production capacity to more than 60 GWh by 2026, with the majority located in North America.
The Tennessee facility therefore does not represent a complete departure from EV batteries. Instead, the strategy gives GM and LGES more flexibility to produce cells for both electric vehicles and stationary energy storage as market conditions change.
GM Reshapes Its Other Battery Partnerships
GM is also restructuring another major U.S. battery partnership.
Earlier this week, Samsung SDI acquired GM’s stake in a battery joint venture building a factory in Indiana. The plant was originally planned to produce prismatic battery cells for electric vehicles.
Under the new ownership structure, the Indiana facility is expected to be converted for energy storage applications instead.
The contrasting strategies highlight how quickly battery manufacturers and automakers are adapting to changes in EV demand. Ohio is returning to EV battery production, while other facilities are being modified to serve the rapidly growing energy storage market.
What the Ohio Restart Means for GM EVs
The restart of Ultium Cells’ Ohio production should provide GM with greater domestic battery capacity for most of its electric vehicle lineup.
It also suggests that GM is not abandoning its EV strategy despite the sharp slowdown experienced after the expiration of the federal tax credit. Instead, the automaker and its battery partners are adjusting production levels and facility usage to better match current demand.
GM previously announced significant write-downs related to its EV business as expectations for future electric vehicle demand were reduced. The company has nevertheless continued developing and producing EVs while adjusting its manufacturing footprint.
The Ohio battery plant’s return to operation is another indication that the U.S. EV market may be entering a more stable phase after the dramatic demand swings seen over the past year.
For GM and LG Energy Solution, the immediate priority is getting workers and production lines back up to speed while maintaining the flexibility to redirect battery capacity toward other applications when necessary.
[source: Reuters]
