LG Energy Solution has started production at its new battery plant in Lansing, Michigan, a 226-acre facility set to become one of the key hubs for battery manufacturing in the United States. The South Korean company, one of the world’s leading battery manufacturers, has invested more than $2 billion in the site since 2022.

The plant will manufacture large-format batteries for both energy storage systems (ESS) and electric vehicles. Once fully operational, it is expected to reach more than 35 GWh of annual production capacity and employ around 1,700 people, up from approximately 900 employees currently.

LFP batteries for energy storage

Part of Lansing’s production will be dedicated to LFP (lithium iron phosphate) cells, a chemistry increasingly used in energy storage systems thanks to its competitive costs and high thermal stability.

The cells manufactured in Michigan will be integrated by LG Energy Solution Vertech, the company’s U.S. energy storage division, into complete systems for utilities, grid-scale storage and commercial and industrial applications.

Among the future users of batteries produced in Lansing will be DTE Energy, the Detroit-based energy company, which will use them in new energy storage projects.

The expansion comes at a time when U.S. electricity demand is increasing and batteries are becoming increasingly important for balancing the power grid by storing electricity when it is available and dispatching it when needed.

NMC batteries for the Toyota Highlander EV

The Lansing plant will not be dedicated exclusively to energy storage. LG Energy Solution will also manufacture NMC (nickel-manganese-cobalt) cells with high energy density for Toyota.

The batteries will be used to power battery-electric vehicles, including the 2027 Toyota Highlander EV, which will be assembled at Toyota Motor Manufacturing Kentucky in Georgetown, Kentucky.

The agreement further strengthens Toyota’s U.S. supply chain, with batteries manufactured domestically for an electric vehicle that will also be assembled in the United States.

More than $5 billion invested in Michigan

With the opening of Lansing, LG Energy Solution now operates two manufacturing facilities in Michigan, located in Holland and Lansing. Since 2010, the company has invested more than $5 billion in the state.

LG Energy Solution also operates its North American regional headquarters and a research and development facility in Troy. By the end of 2026, the company’s total workforce in Michigan is expected to exceed 3,300 employees, making LG Energy Solution one of the state’s 50 largest employers.

The plant’s inauguration was attended, among others, by Michigan Governor Gretchen Whitmer, U.S. Secretary of the Interior Doug Burgum, U.S. Representative Tom Barrett and Consul General of the Republic of Korea in Chicago Sangwoo Hong.

According to LG Energy Solution, local battery production will also help customers meet U.S. domestic content requirements while strengthening Michigan’s role in the country’s battery manufacturing supply chain.

More than 50 GWh of LFP capacity in North America

Lansing is also an important part of LG Energy Solution’s strategy for the energy storage market. The company plans to reach more than 50 GWh of annual LFP cell production capacity in North America by the end of 2026.

This capacity will be spread across three wholly owned facilities — Holland and Lansing in Michigan, and NextStar Energy in Windsor, Ontario — as well as two joint-venture plants: L-H Battery Company in Jeffersonville, Ohio, and Ultium Cells 2 in Spring Hill, Tennessee.

By the end of the year, LG Energy Solution expects approximately 80% of its global ESS cell production capacity to be located in North America.

The opening of the Lansing plant therefore represents a significant step in two directions: increasing U.S. battery production for electric vehicles, while also expanding domestic manufacturing capacity for energy storage systems, which are becoming increasingly important to the country’s electricity infrastructure.

E-Tech Europe 2026

Innovative technologies for the production and recycling of electric and hybrid vehicles, serving the automotive, transport and industrial sectors, will be showcased at E-Tech Europe, taking place from October 7 to 9, 2026, at Bologna Fiere as part of Urban Tech 2026 – The Urban Technology Show.

The new event will focus on the technologies and solutions shaping the future of urban mobility and infrastructure, covering areas including e-mobility, traffic, commuting, security, telecommunications & data, and environment.