GM and LG plan to start commercial production of cost-effective EV batteries by 2028, aiming to reduce costs and meet rising global EV demand.

GM says the new cells will be cheaper for a few reasons. For one, manganese is cheaper than cobalt or nickel. The LMR chemistry will have 0-2% cobalt, 30-40% nickel, and 60-70% manganese. That’s significantly less than today’s leading NMC cells, which are up to 10% cobalt and 80% nickel.

GM will use the new battery cells in future electric trucks and full-size SUVs. By integrating the new battery cells, the company aims to offer over 400 miles of range, but with “significant battery cost savings” compared to its current high-nickel pack.

The early repayment came on the same day GM announced its goal to become the first automaker to use a new, cheaper battery chemistry for electric vehicles.

The Detroit automaker says it will begin commercial production of lithium manganese-rich cells at an Ultium plant in Ohio or Tennessee.