An employee inspects the battery production process at LG Energy Solution’s plant in Holland, Michigan. (Image provided by LG Energy Solution)
SEOUL, June 1 (Korea Bizwire) — LG Energy Solution has commenced mass production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) at its plant in Holland, Michigan, becoming the first major global battery manufacturer to operate a large-scale ESS LFP production line in the United States.
The new batteries are long-cell-based, pouch-type LFP units specifically tailored for ESS applications. Known for their high energy efficiency, enhanced safety, and cost competitiveness, these batteries are already slated for supply to key clients, including Terragen and Delta.
By utilizing its existing facility—originally used for electric vehicle battery production—LG Energy Solution was able to rapidly retrofit and optimize production lines, accelerating the launch timeline well ahead of its earlier plan to begin mass production at a new facility in Arizona by 2026.
The strategic shift reflects the company’s broader effort at “strategic rebalancing,” a move to improve investment efficiency and reduce operational costs amid a slowdown in EV market growth and growing trade policy uncertainties, including tariffs.
LG Energy Solution’s LFP Long Cell Battery for ESS
With localized production, LG Energy Solution gains not only logistical advantages but also tariff-free pricing, strengthening its competitiveness against rivals in the North American market.
The company says it is now better positioned to meet the region’s surging demand for ESS solutions—spanning sectors from AI data centers to renewable energy infrastructure—by offering faster on-site support and stable supply.
“We are in advanced discussions with multiple customers in North America regarding ESS battery supply,” LG Energy Solution said in a statement. “With leading technology and rapid local response, we aim to deliver exceptional customer value in the growing energy storage sector.”
Kevin Lee (kevinlee@koreabizwire.com)
