Why is LG Energy Solution expanding its North American ESS network now?

The company said the expansion is meant to capture rapidly growing demand in the ESS market and to meet demand in North America with improved local capacity. It also said the Lansing operation will help strengthen the U.S. battery ecosystem and support mobility and energy infrastructure.

What major ESS supply deals has LG Energy Solution recently secured?

The company said its ESS order backlog reached 140 gigawatt-hours at the end of last year and that it secured more than 3 trillion won in new ESS orders in the first half of this year. It also cited supply deals with customers including Tesla, Terra-Gen, Excelsior Energy Capital, EG4 Electronics, Hanwha Qcells, DTE Energy and Cypress Creek Energy.

LG Energy Solution eyes US ESS market with local production bases

Q: What does LG Energy Solution produce at its Lansing, Michigan plant?

The plant is a combined manufacturing hub for lithium iron phosphate batteries for ESS applications and nickel cobalt manganese batteries for electric vehicles. It began producing pouch-type LFP batteries for ESS this year and will add prismatic LFP batteries next year.

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Summary

LG Energy Solution has completed its North American ESS production network and is ramping up the Lansing, Michigan plant. The site will make ESS and EV batteries, with prismatic LFP battery mass production set for next year. The company said the expansion will help meet rising demand in North America and strengthen its local battery ecosystem.

Key Facts

The Lansing plant has an annual battery cell production capacity of more than 35 gigawatt-hours.
LG Energy Solution plans to start mass production of prismatic LFP batteries next year, which it says will be its first prismatic battery production in North America.
By the end of this year, the company plans to expand its ESS production capacity in North America to 50 gigawatt-hours, or 80 percent of its global ESS production capacity.

Published Sep 21, 2026 2:49 pm KST

From left, Korean Consul General in Chicago Hong Sang-woo, Michigan Gov. Gretchen Whitmer, U.S. Interior Secretary Doug Burgum, LG Energy Solution CEO Kim Dong-myung and LG Energy Solution Michigan President Choi Dae-sik pose during the opening ceremony of the company's Lansing plant in Michigan, Aug. 18 (local time). Courtesy of LG Energy Solution

LG Energy Solution has completed the establishment of its energy storage system (ESS) production network in North America, accelerating its push to capture growing demand in the rapidly expanding ESS market.

Following the opening ceremony for LG Energy Solution Michigan-Lansing on Aug. 18, the plant is now ramping up operations.

The Lansing plant serves as a combined manufacturing hub for lithium iron phosphate (LFP) batteries for ESS applications and nickel cobalt manganese batteries for electric vehicles (EVs), with an annual battery cell production capacity of more than 35 gigawatt-hours.

The plant began producing pouch-type LFP batteries for ESS applications this year and plans to begin mass production of prismatic LFP batteries next year, marking LG Energy Solution's first prismatic battery production in North America. The company has also secured orders to supply EV batteries to Toyota.

LG Energy Solution Michigan operates two production sites in the state, in Holland and Lansing. LG Energy Solution Michigan President Choi Dae-sik said that operating two plants in different locations is not easy but “there is significant synergy because we can quickly transfer the experience accumulated at the existing plant to the new one.”

He said the company is transferring its production and quality management experience and operational know-how from Holland to Lansing to accelerate the stabilization of the new plant and minimize trial and error. The company plans to connect the workforce, organizations and production experience of the two plants to operate them as a single production system.

An artist's impression of LG Energy Solution's energy storage system network / Courtesy of LG Energy Solution

With the Lansing plant going into operation, LG Energy Solution now has five ESS manufacturing sites in North America: two in Michigan, NextStar Energy’s plant in Ontario, Canada, and two joint venture plants — L-H Battery Company’s plant in Ohio and Ultium Cells’ plant in Tennessee.

By the end of this year, LG Energy Solution plans to expand its ESS production capacity in North America to 50 gigawatt-hours, accounting for 80 percent of its global ESS production capacity. Based on the improved capacity, the company said it will meet rapidly growing demand in the region.

LG Energy Solution’s ESS order backlog reached 140 gigawatt-hours as of the end of last year, while it secured more than 3 trillion won ($2.17 billion) in new ESS orders in the first half of this year.

LG Energy Solution has signed a series of supply deals with customers including Tesla, Terra-Gen, Excelsior Energy Capital, EG4 Electronics and Hanwha Qcells.

In May, LG Energy Solution signed a 6 gigawatt-hour ESS battery supply deal with DTE Energy, which is involved in Oracle’s artificial intelligence data center project. In July, it agreed to supply up to 2.9 gigawatt-hours of ESS batteries for a Google project with renewable energy independent power producer Cypress Creek Energy.

“The operation at Lansing plant is an important milestone that will accelerate LG Energy Solution’s growth in North America,” LG Energy Solution CEO Kim Dong-myung said. “We will strengthen the U.S. battery ecosystem and expand our local production capabilities by building an advanced battery manufacturing network that supports the future of the U.S. mobility industry and energy infrastructure.” (Advertorial)

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