LG Energy Solution Starts Production at $2 Billion Michigan Battery Plant

On August 18, LG Energy Solution announced the start of production at its new USD 2 billion battery manufacturing facility in Lansing, Michigan. The 226-acre site is designed to produce battery cells for electric vehicles and energy storage systems (ESS), strengthening the company’s manufacturing footprint in North America. The Lansing facility currently employs about 900 team members and is expected to reach approximately 1,700 employees when operating at full scale. Once fully ramped, the plant will have annual battery-making capacity of 35 GWh, supporting both automotive and stationary energy storage applications.

Lansing Plant Expands EV Battery Production

The Lansing facility will manufacture energy-dense nickel-manganese-cobalt (NMC) battery cells for Toyota. These cells are intended to power vehicles including the 2027 Toyota Highlander EV, which will be assembled at Toyota Motor Manufacturing Kentucky in Georgetown, Kentucky. The production program gives the Michigan plant a direct role in supporting Toyota’s electric vehicle manufacturing plans in the United States. By combining local battery production with vehicle assembly operations, the facility is positioned to strengthen regional supply chains for electric vehicles while increasing LG Energy Solution’s presence in the North American automotive battery market.

LFP Cells Will Support Energy Storage Systems

In addition to automotive NMC cells, the Lansing facility will produce lithium-iron phosphate (LFP) battery cells for energy storage applications. LG Energy Solution Vertech, the company’s U.S. energy storage division, will integrate these cells into complete systems designed for utility, grid-scale storage and other industrial applications. DTE Energy, based in Detroit, will be among the utilities using batteries produced at the Lansing facility for its energy storage system projects. The dual focus on electric vehicles and stationary storage allows the plant to serve two major battery markets while expanding LG Energy Solution’s domestic production capabilities.

LG Energy Solution Strengthens Michigan Footprint

LG Energy Solution now operates two battery plants in Michigan, with facilities in Holland and Lansing, while also maintaining its North American Regional Group and research and development facility in Troy. The Holland plant has been operational since 2012 and produces automotive battery cells as well as complete batteries for customers including General Motors, Honda and Hyundai Motors. The expanded Michigan footprint gives LG Energy Solution additional manufacturing capacity and supports its broader strategy of establishing a stronger regional battery supply network for automotive and energy storage customers across North America.

North American LFP Capacity Targets More Than 50 GWh

LG Energy Solution plans to establish more than 50 GWh of total LFP cell-making capacity in North America by the end of 2026. The planned capacity will span three wholly owned facilities: LG Energy Solution Michigan-Holland, LG Energy Solution Michigan-Lansing and NextStar Energy in Windsor, Canada. It will also include two joint venture facilities, L-H Battery Company in Jeffersonville, Ohio, and Ultium Cells 2 in Spring Hill, Tennessee. This expansion reflects the company’s effort to increase regional LFP production while supporting growing demand for energy storage systems and battery-powered vehicles.

North America Becomes Key ESS Manufacturing Region

The company also expects North America to account for 80% of its global energy storage system capacity by the end of 2026. The Lansing production start therefore represents more than an individual factory milestone, as it forms part of a wider regional manufacturing strategy covering automotive batteries and ESS technologies. The combination of NMC production for electric vehicles and LFP production for stationary storage gives LG Energy Solution greater flexibility across battery markets. Its expanding network of wholly owned and joint venture plants is also intended to strengthen manufacturing scale and supply availability within the North American market.

Frequently Asked Questions

What is the LG Energy Solution Lansing facility designed to produce?
The LG Energy Solution Lansing facility is designed to manufacture battery cells for electric vehicles and energy storage systems, with annual production capacity expected to reach 35 GWh at full scale. The plant will produce energy-dense NMC cells for Toyota electric vehicles, including the 2027 Toyota Highlander EV, while also manufacturing LFP cells for stationary energy storage applications. The facility currently employs about 900 people and is expected to reach approximately 1,700 employees when full-scale production is achieved.

What is LG Energy Solution’s North American battery capacity target?
LG Energy Solution plans to have more than 50 GWh of total LFP cell-making capacity across North America by the end of 2026. The planned network includes wholly owned facilities in Michigan and Windsor, Canada, along with joint venture plants in Ohio and Tennessee. The company also expects 80% of its global energy storage capacity to be located in North America by the end of 2026, highlighting the region’s growing importance to its battery manufacturing and energy storage strategy.