LG Energy Solution‘s sprawling gigafactory in Lansing, Michigan, is at the heart of the U.S. battery supply chain, producing advanced cells for both Tesla and Toyota. InsideEVs toured the facility, where executives discussed the challenges of shifting production lines, the future of battery chemistries, and the growing demand for energy storage systems.
A Massive Facility with a Changing Mission
The LG Energy Solution (LGES) gigafactory in Lansing, Michigan, covers 2.8 million square feet—half a mile long and a quarter mile wide—on a 226-acre site. Originally planned as an Ultium Cells joint venture with General Motors, the facility became wholly owned by LGES after GM sold its stake in 2023. This move followed the end of federal EV tax credits and slower-than-expected EV sales growth, which have led to several joint-venture restructurings across the U.S. EV industry.
Now, the plant is focused on producing lithium-iron-phosphate (LFP) pouch cells for Tesla’s energy storage systems and nickel-manganese-cobalt (NMC) cells for the upcoming all-electric Toyota Highlander. The Lansing plant also supplies batteries for Michigan’s DTE Energy and is expected to support more automakers in the future.
Inside the Battery Production Process
The factory is highly automated, with robots and automated guided vehicles (AGVs) handling much of the work. Human workers supervise the process in a clinical, dust-free environment. Visitors must wear full protective gear and pass through decontamination procedures to prevent contamination of sensitive battery components.
During the tour, LGES executives highlighted the complexities of switching production lines from EV batteries to energy storage systems. Robert Lee, LGES’s head of North America, explained, “LFP coating is thicker and then there are slight differences in the manufacturing process, so you do need to put in some new equipment and validate them in order to build batteries.” The finished LFP pouch cells are slim, long, and rectangular, and are shipped to LGES’s Holland, Michigan, factory for assembly into complete ESS systems. While the cells are made in the U.S., raw materials are sourced from countries including Indonesia and China.
Rising Demand for Energy Storage
While EV demand has softened, the need for battery energy storage systems (ESS) is surging, driven by the rapid expansion of AI data centers and renewable energy projects. LGES expects its North American ESS division, LGES Vertech, to become profitable by the fourth quarter of this year.
According to research cited by LGES, the U.S. added about 25 gigawatt-hours of energy storage capacity over the past decade, but this year alone has seen an additional 100 GWh. Project sizes have grown from around 10 megawatt-hours to 1,000 megawatt-hours, with improvements in safety, cost, and integration speed.
Infrastructure and Future Battery Technologies
LGES executives emphasized the need for major infrastructure upgrades in the U.S. Robert Lee stated, “There’s a lot of great infrastructure upgrades that we need in this country,” and added, “20 years ago, we had something like twice the power generation of China. Today, they have two and a half times more power generation than the U.S. As a nation, we have to invest in our grid and energy infrastructure.”
Looking ahead, LGES is collaborating with General Motors to develop lithium-manganese-rich (LMR) batteries, which will use less nickel and cobalt and are expected to power GM’s full-size trucks and SUVs from 2028, delivering more than 400 miles (~644 km) of range at a cost similar to LFP batteries. LGES is also preparing to produce new 46-series lithium-ion cells for next-generation EVs at its upcoming Arizona gigafactory.
Why this matters
LG Energy Solution’s Lansing plant is a key example of how the U.S. battery industry is adapting to shifting market demands and regulatory changes. The facility’s ability to pivot between EV and energy storage battery production highlights the flexibility needed in today’s rapidly evolving energy landscape.
With growing demand for energy storage and new battery chemistries on the horizon, investments like this are crucial for supporting both the transition to renewable energy and the future of electric vehicles.
What this means for buyers
For consumers, the expansion of U.S.-based battery manufacturing means greater supply chain security and the potential for more affordable, domestically produced EVs and energy storage solutions. Buyers can expect to see more vehicles and energy products using advanced battery chemistries from plants like LGES’s Lansing facility in the coming years.
Key Specs
- Facility Size: 2.8 million sq ft (~260,000 sq m)
- Site Area: 226 acres (~91.5 hectares)
- Facility Cost: $2B (~AUD 2.8B)
- Battery Chemistries Produced: LFP (lithium-iron-phosphate), NMC (nickel-manganese-cobalt)
- Major Customers: Tesla (ESS), Toyota (EV), DTE Energy
- ESS Capacity Added in 2026: 100 GWh
- Average ESS Project Size: 1,000 MWh (~1 GWh)
- Raw Material Sources: Indonesia, China
Source
Images sourced from: insideevs.com, interestingengineering.com
