Solmar Insights
LG Energy Solution (LGES) has launched production at its new battery manufacturing facility in Lansing, Michigan. Designed to support both energy storage systems (ESS) and electric vehicles (EVs), the site targets over 35 GWh of annual lithium battery manufacturing capacity. With this addition, LGES now produces 80% of its global ESS supply in North America, marking a significant shift in regional manufacturing scale.
Key figures
35 GWh annual battery capacity at Lansing plant
Over $2 billion invested since 2022
900 current employees, rising to 1,700 at full production
Lansing plant details and capacity
The newly commissioned Lansing, Michigan campus is dedicated to manufacturing large-format lithium-iron phosphate (LFP) battery cells for energy storage applications, as well as nickel-manganese-cobalt (NMC) cells destined for the automotive market. The facility’s lithium battery output is projected to exceed 35 GWh annually. This output addresses both growing grid storage demand and the auto sector as electrification accelerates across the United States.
The LFP cells produced at Lansing are integrated by LGES’s U.S. division, LG Energy Solution Vertech, into turnkey ESS products targeting utility-scale, grid, and commercial and industrial storage projects. On the EV side, NMC cells from the plant will supply Toyota’s battery electric vehicles assembled in Kentucky, underlining Lansing’s dual contribution to energy and transportation infrastructure.
With a phased capacity ramp-up, Lansing strengthens the U.S. battery supply chain and localizes ESS and EV battery provision for American developers and energy buyers. In addition to supplying raw cells, the facility’s location supports contractual and logistical needs for offtake and direct integration with energy and grid projects in key U.S. markets.
LGES’s focus on LFP chemistry for stationary storage complements market trends prioritizing safety and longevity, while continuous NMC cell production ensures compatibility with automotive partners’ evolving battery requirements.
Ownership and investment background
Since 2022, LG Energy Solution has invested more than $2 billion into the Lansing site. The facility currently employs about 900 team members, and workforce expansion to 1,700 is anticipated as operations approach full production capacity, supporting regional economic development in line with incentive-based job creation requirements.
The site’s history involves an earlier joint venture between LGES and General Motors, focused on EV battery production. In early 2025, GM sold its stake in the nearly-completed facility to LGES, transferring full ownership and allowing LGES to align the factory’s output for both ESS and EV clients. This transition underscores LGES’s growing autonomy in the North American battery market and its ability to address both utility and mobility storage needs independently.
Beyond capital commitment, Lansing is a strategic component in LGES’s broader North American manufacturing network, positioning the company as a direct supplier to both grid and automotive segments. The buildout reflects the ongoing trend of decoupling and localization within advanced battery value chains, a priority under current industrial and energy policy trends.
North American footprint and integration
With Lansing operational, LGES operates two battery manufacturing facilities in Michigan, the original Holland site and now Lansing, each contributing to its stated goal of over 50 GWh total LFP cell manufacturing capacity in North America by the end of 2026. The company’s additional production assets include wholly owned sites in Windsor, Ontario (NextStar Energy), and joint ventures such as L-H Battery Company in Ohio and Ultium Cells 2 in Tennessee.
This expansion brings 80% of LGES’s global ESS capacity into North America by year-end, consolidating the continent’s role as the central hub of the company’s stationary storage operations. With dedicated integration at the Lansing facility by LGES Vertech, buyers can expect streamlined access to domestic content that meets strict U.S. sourcing standards for grid storage deployment and incentives.
Enhanced regional integration also facilitates quicker response times for utility procurement cycles, capacity market participation, and project delivery schedules critical to large-scale renewables and data center infrastructure. Further, by developing dual streams for ESS and EV batteries, LGES demonstrates agility in serving both energy sector and OEM customer requirements within a single investment and operating framework.
Buyers and project developers benefit from improved transparency in supply chain and logistics, which can reduce project lead times and support compliance with federal energy and procurement regulations.
Significance for grid and digital infrastructure
The upscaling of ESS production in North America is poised to have direct market impacts for grid operators, utilities, and large-scale digital infrastructure buyers. With LGES now providing most of its storage product output domestically, project sponsors from the utility-scale solar, wind, and data center sectors gain access to greater battery supply certainty and increased project eligibility under U.S. content mandates or inflationary adjustment mechanisms.
The proximity of manufacturing assets also supports more predictable interconnection and commissioning timelines for grid-tied storage, an ongoing pain point for project developers navigating complex ISO/RTO processes. By consolidating ESS manufacturing closer to project sites, buyers can realize efficiencies in delivery, serviceability, and uptime for grid balancing, resource adequacy, or renewable integration.
The inclusion of energy-dense NMC batteries for automotive partners broadens the facility’s contribution, indirectly benefitting grid stability through potential bi-directional EV integration and additional synergies in battery lifecycle management. The Lansing site positions LGES as a leading supplier at the intersection of stationary storage and electrified transport, both critical to modernizing the country’s energy and digital backbone.
For hyperscalers, regional utilities, and independent power producers, the expansion translates to advocacy leverage during PPA negotiations, with supply surety underpinning capital allocation strategies for massive storage-dependent projects.
Outlook for U.S. energy storage supply
Looking forward, LGES’s manufacturing scale-up and consolidation in Michigan and North America suggests a more robust domestic battery ecosystem for the foreseeable future. With three wholly owned production sites and two joint ventures operational by the end of 2026, the company is positioned to be a dominant ESS supplier across the U.S. and Canadian utility markets.
This domestic production base provides a buffer against international supply chain constraints and enables buyers to better predict pricing, lead times, and contract fulfillment for multi-gigawatt storage procurement. As grid operators and large energy users continue to seek capacity commensurate with renewables buildout and the needs of hyperscale data centers, supply continuity and domestic manufacturing will play growing roles in procurement risk management.
Full ownership of the Lansing facility also allows LGES to refine internal technology, production scheduling, and customer alignment without external JV constraints, creating opportunities for further process optimization. The facility’s fulfillments are expected to be especially relevant for developers and utilities seeking eligibility for federal project incentives tied to American content requirements.
The ongoing hiring at Lansing demonstrates continued commitment to industrial job creation and anchors the facility’s contribution to regional and national clean energy targets.
What this means for buyers
Buyers of utility-scale storage, grid operators, and data center developers now have enhanced access to U.S.-manufactured LFP and NMC batteries through LG Energy Solution’s expanded Michigan operations. This improves the reliability of domestic battery supply and supports compliance with U.S. content rules vital for incentive eligibility. With additional regional capacity, project sponsors can more confidently manage timelines, pricing, and supply risks for large-scale storage procurements. As battery localization accelerates, LGES’s investments stand to streamline procurement processes for stakeholders across energy and digital infrastructure sectors.
