By Kalea Hall

DETROIT, March 17 (Reuters) - General Motors GM.N and battery partner LG Energy Solution are transforming an electric-vehicle battery plant in Tennessee to make batteries for energy storage systems, the companies said Tuesday.

GM and LG, through their joint venture Ultium Cells, will recall 700 laid-off workers to start production of lithium-iron phosphate batteries at the plant in the second quarter. Ultium in January laid off workers at the Tennessee plant and at another facility in Ohio through mid-2026 due to slower EV sales.

Battery producers are seeking solutions to address excess EV battery capacity, and energy storage is seen as a key option given the growing need for energy to support upcoming AI data centers.

(Reporting by Kalea Hall and editing by Mike Colias and Chizu Nomiyama )

((kalea.hall@thomsonreuters.com))