LG Energy fires up $2B Michigan battery plant, targets 50+ GWh capacity by year-end

LG Energy Solution has started battery production at a new 226-acre facility in Lansing, Michigan, bringing large-format battery manufacturing for electric vehicles and energy storage systems under one roof. The plant is designed to reach more than 35 GWh of annual battery production at full scale and employ up to 1,700 people. The company has invested more than $2 billion in the Lansing facility since 2022 and currently employs about 900 people there. The factory will make two types of lithium-ion batteries for different uses. Its lithium-iron phosphate (LFP) cells are intended for energy storage systems, while nickel-manganese-cobalt (NMC) cells will supply Toyota for battery-electric vehicles. LFP batteries generally prioritize lower cost and longer cycle life, while NMC cells offer higher energy density, making each better suited to its intended application. The LFP cells will be integrated by LG Energy Solution Vertech into complete storage systems for utility, grid-scale, commercial and industrial applications. NMC cells made at Lansing will power vehicles including the 2027 Toyota Highlander EV, which will be assembled in Kentucky. Two battery types, one plant The split production strategy gives the Lansing facility a role in both transportation and the electricity grid. Energy storage batteries can help utilities hold electricity and dispatch it when demand rises, while the automotive cells support a more localized U.S. battery supply chain. DTE Energy is expected to use batteries produced at Lansing for future energy storage projects. The company said domestic production will also help customers meet U.S. domestic content requirements. “Today marks a defining milestone for LG Energy Solution. Lansing will produce advanced batteries that support not only the future of mobility, but also America’s growing energy infrastructure and digital economy,” said David Kim, CEO of LG Energy Solution. “We are strengthening America’s battery ecosystem, expanding our manufacturing footprint and reaffirming our long-term commitment to the United States.” The Lansing operation also expands LG Energy Solution’s manufacturing presence in Michigan. The company already operates a battery plant in Holland and maintains its North American regional headquarters and research and development facility in Troy. Scaling North American storage LG Energy Solution has invested more than $5 billion in Michigan since 2010. By the end of 2026, its Michigan workforce is expected to exceed 3,300 employees. The company is also building a much larger North American footprint for energy storage batteries. It expects more than 50 GWh of total LFP cell-making capacity across North America by the end of 2026. That capacity will come from three wholly owned plants and two joint ventures in the United States and Canada. The company expects about 80 percent of its global energy storage capacity to be located in North America by the end of this year. For Lansing, the immediate focus is scaling production. Once fully operational, the facility will combine automotive battery manufacturing with cells destined for large-scale energy storage, giving Michigan another major role in the growing U.S. battery supply chain.Get the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.