LG Energy Solution, long known for producing electric‑vehicle (EV) cells, is rapidly pivoting its North American operations toward stationary energy‑storage batteries. At a recent opening event at the company’s Lansing, Michigan factory, regional president Robert Lee said five of the eight U.S. plants will be dedicated to energy‑storage systems (ESS) by the end of the year.

Local impact in Lansing

The Lansing facility, which recently began supplying energy‑storage cells to Tesla and regional utilities, will now focus on large‑format lithium‑iron‑phosphate (LFP) batteries. While LFP chemistry offers lower energy density than LG’s traditional nickel‑based cells, it is praised for safety and durability—qualities essential for grid‑scale storage.

Why the shift?

Demand for stationary batteries is accelerating as AI data centers and power‑grid operators seek reliable storage solutions. Benchmark Mineral Intelligence projects North American stationary‑battery demand to reach 76 GWh this year and nearly double to 125 GWh within five years. LG’s move aims to capture a share of that growth, even as excess capacity from earlier EV‑focused investments remains.

EV production continues

Despite the pivot, LG Energy is not abandoning EV batteries. The joint‑venture plant with General Motors in northeast Ohio resumed production of cells for GM’s electric models after a seven‑month shutdown. Lee emphasized that EV sales will eventually dominate passenger‑vehicle markets in the United States.

Industry context

The transition reflects a broader industry recalibration. Companies that poured billions into EV‑battery factories earlier this decade now confront a slower‑than‑expected EV rollout. By diversifying into ESS, manufacturers like LG hope to mitigate under‑utilized capacity while supporting the nation’s expanding renewable‑energy infrastructure.

LG Energy’s Lansing plant exemplifies how local manufacturing can adapt to shifting energy needs, offering new job opportunities and reinforcing Michigan’s role in the evolving battery landscape.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.