LG Energy Solution opens Michigan plant, expands ESS network

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, Tuesday (local time). Courtesy of LG Energy Solution

LG Energy Solution has begun operations at its new battery manufacturing facility in Lansing, Michigan, marking a major step in its effort to expand production capacity in North America and capitalize on surging demand for energy storage systems (ESS).

The company said it held an opening ceremony at the Lansing plant on Tuesday (local time), with Michigan Gov. Gretchen Whitmer, U.S. Interior Secretary Doug Burgum and other government and company officials in attendance.

The Lansing facility, LG Energy Solution’s seventh production site in North America, will make both lithium iron phosphate (LFP) batteries for ESS and nickel-cobalt-manganese batteries for electric vehicles (EV), with the company targeting annual production capacity of more than 35 gigawatt-hours.

With the latest facility, LG Energy Solution now has five ESS production sites across North America, as demand grows for batteries used to support artificial intelligence (AI) data centers, power grids and renewable energy projects.

“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,” LG Energy Solution CEO Kim Dong-myung said.

“We are strengthening America’s battery ecosystem, expanding our manufacturing footprint and reaffirming our long-term commitment to the United States.”

The plant will make LFP batteries for ESS customers, including utilities and AI data centers, with the company's U.S-based subsidiary Vertech integrating the cells into complete storage systems.

LG Energy Solution had about 140 gigawatt-hours of ESS orders in its backlog at the end of last year and secured more than 3 trillion won ($2.14 billion) in new contracts in the first half of this year.

“Domestic battery production is foundational to America’s energy future — reducing dependence on foreign adversaries, driving good-paying American jobs and advancing the American Energy Dominance Agenda,” Burgum said. “Michigan is uniquely positioned to help lead this effort with its skilled workforce, manufacturing expertise and the industrial capabilities needed to strengthen America’s domestic battery supply chain.”

LG Energy Solution has maintained a manufacturing presence in Michigan since 2010, when it opened its first U.S. EV battery plant in Holland. In 2022, the company announced a $1.7 billion expansion there that was expected to create up to 1,200 jobs, underscoring its long-term investment in the state.

The company said the Lansing plant is part of its broader strategy to rebalance its global production network and diversify beyond EV batteries into ESS and other growth businesses. By the end of this year, it expects to secure more than 50 gigawatt-hours of LFP battery production capacity for ESS applications in North America.