DETROIT, July 14 (Reuters) - General Motors ( GM ) is

planning to produce lower-cost battery cells at its

joint-venture plant with South Korea's LG Energy Solution

in Tennessee.

The Detroit automaker is rolling out production of

lithium-iron-phosphate (LFP) batteries, a technology that is

gaining popularity at other automakers in the U.S. including at

cross-town rival Ford Motor ( F ). GM will begin converting

battery cell lines at its Spring Hill, Tennessee facility later

this year, and commercial production is expected to begin by

late 2027, the company said Monday.

GM and other automakers have pulled back some of their goals

around electric vehicle production as demand for the models has

been weaker-than-anticipated. Still, auto companies are

investing billions in future battery technology and EV

production facilities, with the expectation that shoppers will

eventually make the switch from traditional gasoline vehicles.

GM currently produces nickel-cobalt-manganese-aluminum cells

at the factory, and will continue to do so at a plant in Ohio.

The cells produced in Tennessee are used for EVs made at the

neighboring assembly plant, including the Cadillac Lyriq. The

factory employs about 1,300 people, GM said. Workers at the

Ultium Cells joint-venture factory earlier this year approved

their first contract with the United Auto Workers union.

Ford is planning to produce LFP batteries at a factory in

Michigan using technology from Chinese battery giant CATL

. The plant, announced in 2023, has drawn scrutiny

from some lawmakers for its ties to the Chinese company. It is

expected to begin production in 2026.

Both automakers are also working on production of lithium

manganese-rich (LMR) chemistries, which are intended to provide

drivers with more mileage on their EVs before needing to charge.

Concerns around battery range, as well as high vehicle prices,

are some of the top barriers keeping customers from buying

electric vehicles, auto executives have said.