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LG Energy Solution has started production at its new battery manufacturing facility in Lansing, Michigan, as the South Korean company expands its North American supply base for both energy storage systems and electric vehicles.
The 226-acre plant is designed to reach more than 35 gigawatt-hours of annual battery production capacity at full scale. LG Energy Solution said it has invested more than $2 billion in the facility since 2022 and expects employment to increase from about 900 workers currently to 1,700 at full production.
The Lansing plant will manufacture lithium iron phosphate, or LFP, cells for energy storage applications as well as higher-energy-density nickel-manganese-cobalt, or NMC, cells for electric vehicles.
The LFP cells will be integrated into utility-scale and commercial storage systems by LG Energy Solution Vertech, the company's U.S. energy storage business. Michigan utility DTE Energy will be among the customers using Lansing-produced batteries for future energy storage projects.
The expansion comes as U.S. electricity demand is rising, driven in part by data centers, manufacturing and broader electrification, increasing demand for grid-scale storage that can help utilities balance electricity supply and consumption.
LG Energy Solution has increasingly emphasized the energy storage market as it diversifies beyond EV batteries. The company said last month that strong ESS sales helped support its first-half 2026 performance and that it was expanding North American production capacity to capture further storage demand.
On the automotive side, Lansing will manufacture NMC cells for Toyota, including batteries intended for vehicles such as the 2027 Toyota Highlander EV, which is scheduled to be assembled in Kentucky. LG Energy Solution and Toyota previously reached a long-term U.S. battery supply agreement covering about 20 GWh annually, accompanied by a multibillion-dollar investment in Michigan production capacity.
The Lansing site's ownership has also evolved. The facility was originally developed as an Ultium Cells joint venture between LG Energy Solution and General Motors, but GM agreed in 2024 to sell its interest in the nearly completed plant to its Korean partner.
LG Energy Solution now operates two manufacturing facilities in Michigan, in Lansing and Holland, and says it has invested more than $5 billion in the state since 2010.
The company expects to have more than 50 GWh of LFP battery cell capacity serving the North American energy storage market by the end of 2026 across wholly owned and joint-venture plants in the United States and Canada. It expects roughly 80% of its global ESS production capacity to be located in North America by year-end.
The shift gives LG Energy Solution greater exposure to a U.S. storage market that is becoming increasingly important alongside its established EV battery business, while locally produced cells can also help customers meet domestic-content requirements tied to U.S. clean-energy incentives.
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