LG Energy Solution Launches Lansing Plant, Expanding North American ESS Production
LG Energy Solution has officially launched its Lansing battery plant in Michigan, strengthening its North American manufacturing footprint as it shifts greater focus toward the rapidly growing energy storage system (ESS) market.The company held an opening ceremony at the Lansing facility on Aug. 18
The LG Energy Solution company has officially opened a new battery manufacturing plant in Lansing, Michigan, marking a significant expansion of its North American production capabilities in the rapidly growing energy storage system (ESS) market. The groundbreaking ceremony took place on August 18th, attended by top officials including Michigan Governor Gretchen Whitmer, U.S. Interior Secretary Doug Burgum, Representative Tom Barrett, and LG Energy Solution CEO Kim Dong-myung.
The new facility boasts an annual production capacity of over 35 gigawatt-hours (GWh) and will primarily manufacture lithium iron phosphate (LFP) batteries for energy storage systems and nickel-cobalt-manganese (NCM) batteries for electric vehicles. These LFP batteries produced at the Michigan site will be supplied to North American power infrastructure and AI data center customers through Vertech, LG Energy Solution's subsidiary specializing in ESS system integration.
As of the end of last year, the company had secured an ESS order backlog of approximately 140 GWh in North America and added more than 3 trillion won (around $2.15 billion) in new orders during the first half of this year alone. The EV batteries produced at this Michigan plant will eventually support vehicles such as the 2027 model-year Toyota Highlander, which will be manufactured at Toyota's Kentucky plant.
With the Lansing plant now fully operational, LG Energy Solution has established a comprehensive North American ESS manufacturing network that includes standalone facilities in Michigan and Ontario, as well as strategic partnerships with Honda in Ohio and General Motors in Tennessee. Industry observers view the launch of the Lansing plant as a crucial step in LG Energy Solution's ongoing portfolio restructuring, as the company shifts its focus from electric vehicle (EV) batteries to the rapidly expanding ESS market driven by renewable energy growth and the increasing demand for AI data centers.
The U.S. ESS market is projected to experience significant growth in the coming years, with Wood Mackenzie forecasting that cumulative new ESS installations in the United States could reach 499 GWh by 2031, approximately four times the current market size. To capitalize on this growth, LG Energy Solution aims to secure more than 50 GWh of annual ESS LFP production capacity in North America by the end of this year.
In a statement, LG Energy Solution CEO Kim Dong-myung emphasized the importance of the Lansing plant in accelerating the company's expansion in North America, stating, "Launching the Lansing plant marks an important milestone in accelerating our growth in North America. We will continue strengthening our advanced battery manufacturing network and expanding local production capabilities to contribute to the development of the U.S. battery ecosystem."
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