LG Energy Solution has officially started battery production at its new Lansing, Michigan, facility, marking another major step in the expansion of U.S.-based battery manufacturing.
The 226-acre (91.5-hectare) plant is designed to produce more than 35 GWh of batteries annually at full capacity. Unlike its original plans, however, the facility will serve multiple customers and battery markets, producing both lithium iron phosphate (LFP) cells for energy storage systems and nickel-manganese-cobalt (NMC) cells for Toyota electric vehicles.
LG Energy Solution has invested more than $2 billion in the Lansing facility since 2022. The plant currently employs around 900 people, with the workforce expected to grow to approximately 1,700 employees once production reaches full capacity.
From GM Battery Plant to Multi-Purpose Facility
The Lansing factory was initially planned as the third U.S. battery plant for Ultium Cells, the joint venture between General Motors and LG Energy Solution.
That plan changed in late 2024 when GM announced that it would sell its stake in the nearly completed facility to LG Energy Solution. The transaction was finalized in May 2025, when construction was already about 98% complete.
GM’s decision was part of a broader effort to align battery manufacturing investments with the pace of electric vehicle adoption while managing capital more efficiently. The move did not end GM’s partnership with LG Energy Solution, with the Ultium Cells facilities in Ohio and Tennessee remaining under the existing joint-venture structure.
LG Energy Solution subsequently took full ownership of the Lansing plant and reworked its production plans to serve a broader range of customers.
Toyota EV Batteries Will Be Made in Lansing
One of the biggest changes is the addition of Toyota as a customer.
LG Energy Solution will manufacture high-energy-density NMC battery cells for Toyota at the Michigan facility. The cells are expected to support Toyota’s next-generation electric vehicles, including the 2027 Toyota Highlander EV.
The three-row electric SUV is planned for production at Toyota Motor Manufacturing Kentucky in Georgetown, Kentucky. Toyota will also assemble battery modules at its battery facility in North Carolina, creating a largely U.S.-based supply chain from cell production through vehicle assembly.
The Lansing plant will therefore become an important part of Toyota’s growing North American EV manufacturing network.
LFP Batteries for Energy Storage
Automotive batteries are only part of the Lansing strategy.
LG Energy Solution is already producing LFP cells at the facility for energy storage systems (ESS). These lithium iron phosphate batteries are designed for utility-scale, grid-storage, commercial and industrial applications.
LG Energy Solution Vertech, the company’s U.S. energy storage division, will integrate the cells into complete battery storage systems. Detroit-based DTE Energy is expected to be among the utilities using batteries produced at the Lansing facility for future energy storage projects.
The demand for grid-scale batteries is increasing as electricity consumption rises and utilities add more renewable energy to the power grid. Energy storage allows electricity to be stored when supply is high and dispatched when demand increases, helping improve grid reliability.
Tesla to Source LFP Cells From Lansing
The Lansing facility is also set to supply Tesla.
LG Energy Solution secured a roughly $4.3 billion contract in 2025 to supply prismatic LFP cells, with the U.S. government confirming in March 2026 that Tesla was the customer.
Deliveries are expected to begin in 2027. The cells are anticipated to support Tesla’s stationary energy storage business, including its Megapack 3 systems, which are planned for production in Houston, Texas.
The Tesla deal further demonstrates how the Lansing plant has evolved beyond its original automotive-focused purpose.
NMC cells offer higher energy density, making them well suited to electric vehicles where weight, range and packaging are important. LFP chemistry generally offers lower costs, strong cycle life and good durability, making it particularly attractive for large stationary energy storage systems.
LG Energy Solution Expands U.S. Battery Production
Lansing is part of a much larger North American battery strategy for LG Energy Solution.
The company plans to have more than 50 GWh of annual LFP cell production capacity in North America by the end of 2026. That capacity will be spread across three wholly owned facilities and two joint-venture plants.
The company’s North American LFP production network includes facilities in Lansing and Holland, Michigan, as well as NextStar Energy in Windsor, Ontario. Joint-venture facilities in Ohio and Tennessee will also contribute to the company’s regional ESS capacity.
LG Energy Solution expects approximately 80% of its global ESS production capacity to be located in North America by the end of 2026.
The company has invested more than $5 billion in Michigan since 2010. In addition to its Lansing and Holland manufacturing facilities, LG Energy Solution operates its North American regional headquarters and an R&D facility in Troy. Its Michigan workforce is expected to exceed 3,300 employees by the end of 2026.
A New Role for Lansing in the U.S. EV and Energy Storage Market
The opening of LG Energy Solution’s Lansing plant represents a significant change from the facility’s original mission.
What was once intended to be a GM-focused Ultium battery factory is now positioned to supply batteries for Toyota electric vehicles, Tesla energy storage systems and utility-scale ESS projects.
With more than 35 GWh of planned annual production, the Michigan plant will give LG Energy Solution additional flexibility as demand shifts between electric vehicles and stationary energy storage.
For Michigan, the facility also strengthens the state’s position as a major U.S. battery manufacturing hub. For LG Energy Solution, the combination of NMC automotive cells and LFP energy storage batteries provides a more diversified business model while expanding domestic battery production.
