Onshoring Battery Storage: LG Energy Solution Opens $1.4B LFP Manufacturing Plant in Michigan

    June 26, 2025
    The Holland LFP manufacturing plant eventually could employ up to 1,700 people. The production line currently is designed to average about 16.5 GWh in annual capacity, with ambitions to increase that to 21.5 GWh per year
    Image credit LG Energy Solution
    685d4d535afc1f844b537f81 Lg Energy Solutions

    Korean-based LG Energy Solution is celebrating the start of operations this year at what the company calls the biggest lithium-iron phosphate battery manufacturing production site in the U.S.

    LG’s facility started production early in May in Holland, Michigan, part of a $1.4 billion investment by the Korean company. The lithium-iron phosphate (LFP) chemistry is often used for stationary battery storage applications and is considered safer and less prone to fire than the predominant lithium-ion technology.

    Graphic showing atomic structure of LFP. Image public domain/courtesy Wikimedia Commons
    Graphic showing atomic structure of LFP. Image public domain/courtesy Wikimedia Commons

    The Holland LFP manufacturing plant eventually could employ up to 1,700 people. The production line currently is designed to average about 16.5 GWh in annual capacity, with ambitions to increase that to 21.5 GWh per year (5 GWh focused on EV batteries and more than 16 GWh on energy storage systems).

    LG Energy Solution opened the plant for a tour to some of the nation’s energy media and battery storage advocates.

    “That’s a sizable portion of annual domestic demand for energy storage battery cells,” Noah Roberts, vice president for energy storage at the American Clean Power Association (ACPA), said as quoted in Canary Media. “It’s a testament and demonstration of the industry’s commitment to onshoring manufacturing and ramping it up in short order.”

    Onshoring incentives for clean energy projects from the Biden-era Inflation Reduction Act and Infrastructure Act, as well as President Trump’s push to strengthen domestic manufacturing, are attracting more plant investment in the U.S. Earlier this year, the ACPA announced a $100 billion commitment by global energy storage companies to build up the American battery supply chain.

    It is LG Energy Solution’s third battery cell plant in Michigan and the company has operated in the state since 2012. In May, LG closed on its acquisition of the Lansing EV battery cell manufacturing plant from Ultium Cells, itself a joint venture with General Motors.

    In addition to production of LFP batteries, LG Energy Solution will utilize the Holland factory to also produce nickle manganese cobalt (NMC) cells and modules for the Ford Mustang Mach-E electric vehicle. Those production lines were only recently onshored to the U.S. from an LG Energy Solution facility in Wroclaw, Poland.

    Lithium-ion technology still dominates the world’s battery storage and EV battery markets, although developers are pursuing alternatives because of li-ion’s fire safety issues. LFP is considered a distant runner-up on some fronts because of li-ion's energy density, but growing in application with its advantage in long cycle lives and thermal stability.

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    About the Author

    Rod Walton, EnergyTech Managing Editor | Managing Editor

    For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

    Rod Walton has spent 15 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

    He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.

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