General Motors and LG Energy Solution have announced a new phase in their ongoing partnership: developing a new battery cell chemistry that could significantly lower the cost of electric vehicles. The joint effort centers on lithium manganese iron phosphate (LMFP) battery cells, a variation of lithium iron phosphate (LFP) that’s gaining popularity for being more affordable and less reliant on expensive materials like nickel and cobalt.
This is a big deal because battery costs are still the single largest expense in producing EVs. According to GM and industry experts, LMFP cells could help bring the cost of electric vehicles close to — or even on par with — gas-powered cars. The goal? Making EVs accessible to a broader range of drivers without sacrificing range or performance.
GM plans to use these LMFP batteries in future Ultium-based EVs, its modular electric platform that underpins models like the Chevrolet Equinox EV and Blazer EV. Those models are priced starting around $35,000–$50,000 — still noticeably higher than GM’s most popular internal combustion engine (ICE) vehicles like the gas-powered Equinox and Silverado, which often start closer to $28,000 and $36,000, respectively.
If LMFP batteries can knock down those EV prices, that gap could shrink fast. This would be key to helping GM hit its long-term EV adoption targets while maintaining profitability. Unlike some pricier battery chemistries, LMFP batteries are more stable and cost-efficient, especially when produced at scale. GM and LG say production of these new cells will happen in the U.S., supporting domestic supply chains and eligibility for tax incentives.
In short, this partnership isn’t just a science experiment — it’s a step toward solving one of the EV market’s biggest roadblocks: affordability. If successful, it could mark a turning point in the electric era, where choosing an EV no longer means paying a premium.