LG Energy Solution launches battery production in Lansing
LG Energy Solution (LGES) has launched production at its new battery plant in Lansing, Michigan, USA. Originally a joint venture with GM, the factory now belongs entirely to the Korean cell manufacturer. LGES is expanding the site's focus: In addition to LFP cells for Tesla's stationary storage systems, NMC cells for Toyota EVs will also be produced there in the future.
The 91.5-hectare facility is expected to achieve an annual production capacity of over 35 GWh at full capacity. According to LGES, the company has invested more than two billion dollars in the site since 2022. Currently, the plant employs around 900 people, with plans to increase this number to up to 1,700 in the future.
The production launch is particularly significant given the plant’s history: Lansing was originally meant to be the third cell factory for Ultium Cells, the joint battery venture between General Motors and LGES. However, towards the end of 2024, GM announced that it would sell its stake in the nearly completed site to LGES.
This move did not, however, mark a complete withdrawal by GM from Ultium Cells. The joint ventures in Ohio and Tennessee remained unaffected by the transaction. GM cited the need to adapt its battery production capacities in a capital-efficient manner to the development of the EV market as one of the reasons for the decision.
The acquisition was finalised in May 2025 – at which point construction work was already 98 per cent complete, according to LGES. Since then, Lansing has been fully owned by the Korean battery cell manufacturer.
Toyota secures capacity from GM
Following GM’s exit from the project, LGES repurposed the site. In early 2025, it was announced that Toyota would transfer an existing battery order with LG Energy Solution to the Lansing plant. This gave the facility, previously tailored to GM, a new key customer from the automotive industry.
In the future, LGES will manufacture NMC cells containing nickel, manganese, and cobalt for Toyota at the Lansing plant. One of the intended vehicles is the all-electric Toyota Highlander for the 2027 model year. The three-row eSUV is set to be produced at Toyota’s plant in Georgetown, Kentucky, in the US.
The battery supply chain will be spread across several locations, with Toyota stating that the battery modules for the Highlander will be assembled at its battery plant in North Carolina. The cells produced by LGES in Lansing can thus be further processed within a largely US-based supply chain before the battery is installed in the vehicle in Kentucky.
Unlike the Toyota cells, production of LFP cells for stationary energy storage systems is already underway in Lansing. LGES manufactures lithium iron phosphate cells there for so-called Energy Storage Systems (ESS). These will be integrated by the US subsidiary LG Energy Solution Vertech into complete systems for energy suppliers, as well as commercial and industrial applications. Among the future customers is the energy provider DTE Energy from Detroit.
Tesla to source cells from Lansing in 2027
From 2027, Tesla will also source LFP cells from Lansing, following a 2025 announcement that LGES had secured a supply contract for prismatic LFP cells worth approximately $4.3 billion – which the US government confirmed came from Tesla in March 2026.
Among other applications, the cells are expected to be used, among other applications, in Tesla’s Megapack 3, whose production is planned for Houston, Texas, in the US. This development means that, in addition to its business with EV batteries, LGES is increasingly tapping into the market for stationary large-scale storage systems.
This diversification is strategically significant for the Lansing site. What was originally a cell factory heavily tailored to General Motors’ ramp-up has evolved into a facility serving two distinct markets and cell chemistries: high-energy-density NMC cells for electric vehicles and more cost-effective, cycle-resistant LFP cells for stationary storage.
The different applications place distinct demands on the batteries. In vehicles, energy density, weight, and installation space are particularly critical. For stationary storage, however, the focus is primarily on costs, lifespan, and a high number of charge cycles.
LGES expands ESS business in North America
Lansing is also part of a broader strategy by LG Energy Solution. By the end of 2026, the company aims to establish over 50 GWh of production capacity for LFP cells for stationary storage across three of its own and two jointly operated sites in North America.
According to the group, around 80 per cent of its global ESS production capacity will then be located in North America. LGES is responding to both the growing demand for locally produced batteries and the increasing need for large-scale storage systems for power grids, renewable energy, and industrial applications.
What was once planned as the third Ultium plant for GM and LGES has thus become a significantly more diversified battery production site. Toyota secures part of the future demand from the automotive sector, while the ESS business already ensures capacity utilisation. For LGES, this combination also reduces dependence on the market ramp-up of individual electric vehicle models and manufacturers.