LG Energy Solution's Newest Battery Megafactory Just Kicked Off Production

This Lansing, Michigan plant will employ up to 1,700 people and produce up to 35 GWh worth of batteries per year.

Photo by: LGES

By: Kevin Williams

Aug 18, at 2:20pm ET

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This plant will produce battery cells for both cars and energy storage systems.
The Toyota Highlander will use NMC cells from this plant. The energy storage systems will use LFP cells.
This facility will employ up to 1,700 people and produce up to 35 GWh worth of cells per year.

LG Energy Solution announced today that it has officially started production of EV batteries in its new facility in Lansing, Michigan. This 226-acre plant will be instrumental in providing EV battery cells and modules to key products from some well-known car brands.

The 226-acre facility has had more than $2 billion of investment, and currently employs 900 people. At maximum capacity, this facility will employ 1,700 people and produce up to 35 GWh of production per year.

LGES says that this factory will serve a pivotal role in Michigan’s manufacturing capabilities, producing cells and large-scale battery storage solutions for different brands.

One of the most notable clients for this factory is Toyota. LG will produce nickel-manganese-cobalt (NMC) lithium battery modules for the upcoming all-electric three-row Toyota Highlander. These cells will travel to the Georgetown, Kentucky plant, which shows a big investment in America’s EV supply chain. A major part of the Highlander’s supply chain will stay here in the country.

But the facility doesn't just produce NMC cells and packs. LG will also build lower-cost lithium-iron-phosphate (LFP) cells for energy storage systems, with Tesla as a key customer.

Photo by: Toyota

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This is great news for EV production and for manufacturing jobs. LGES plans to have 50 GWh of battery production capacity all over North America. This includes not just the Lansing plant but also LG’s other plants in Holland, Michigan, Nextar Energy plant in Windsor, Ontario and an upcoming facility in Arizona among its North American footprint. The figure also includes joint-venture plants, like the Ultium cell plant in Tennessee, and LG's partnership with Honda in Ohio.

Luckily, it seems like the Lansing plant is fairly future-proofed. Whereas slower-than-expected sales of the Ultium platform cars and the cancellation of Honda’s EV platform have no doubt been a damper on LG’s joint venture plants, the ability to focus on energy storage solutions has been a saving grace. Also, Toyota has been remarkably committed as of late to full electrification. The new Highlander EV is one of the seven fully electric models planned to be launched by 2027. If they’re American-made, then I wouldn’t be surprised if LG Energy Solution’s plant ends up making more than just batteries for the new Highlander.