South Korea's leading battery manufacturer, LG Energy Solution Ltd (LGES), announced on Wednesday that it has initiated production of lithium iron phosphate (LFP) battery cells for energy storage systems (ESS) at one of its two joint venture plants with General Motors.

Due to a slowdown in electric vehicle demand, Ultium Cells, the joint venture between LGES and General Motors, had temporarily halted operations at its two plants in Ohio and Tennessee in January.

To better utilize the facilities, the company announced in March an investment of 106.1 billion won (approximately $70 million) in the Tennessee plant to convert part of its EV battery production line to an ESS battery line, with production set to commence in the second quarter.

The announcement stated that the LFP batteries produced at the Tennessee plant will be supplied through the company's U.S. subsidiary, LG Energy Solution Vertech, for local cable network projects, renewable energy-related energy storage facilities, and power infrastructure for AI data centers.

LG Energy Solution Ltd is expanding ESS battery production in the United States to offset the prolonged slowdown in the electric vehicle market.

Last week, the company began producing ESS battery cells at L-H Battery Company, its joint venture with Honda Motor Co., Ltd.

The company also plans to commence ESS battery cell production later this year at its wholly-owned battery plant in Michigan.