LG Energy Solution Opens New LFP Battery Cell Lines In Michigan To Support Energy Storage As Demand Cools From EV Manufactures

Introduction

LG Energy Solution’s new lithium-iron phosphate (LFP) battery plant in Holland, Michigan, marks a significant step for clean energy in the US. Opened in early May 2025, this facility shifts focus from electric vehicles (EVs) to energy storage systems (ESS) as EV demand cools. This article explores the plant’s impact on jobs, the economy, clean energy, and how policies like the Inflation Reduction Act (IRA), the One Big Beautiful Bill, tariffs, and competitors shape its future. We at CleanTechnica have been covering LG Energy and its partnerships (mostly with GM) for years. Click here to read some of our articles on them.

My Visit To Holland, Michigan

This windmill still grinds grain at the Windmill Island Gardens.

CleanTechnica got invited to beautiful Holland, Michigan, I was the one who ended up agreeing to go that far for a 3-hour tour. Because the location is remote, it takes 10 to 12 hours to get there, unless you live in the area. I’ll have to say it was worth the trip both because the LG Energy story is significant and also because it is a beautiful city proud of its Dutch heritage.

My Visit To The LG Plant

During my visit to the Holland plant, I was struck by its scale — spanning 42 football fields — and the buzz of innovation. I spoke with Bob Lee, President of North America for LG Energy Solution, who said, “We have a solution where we can provide energy storage in any location where the energy is being produced and where it can be used in an efficient way to optimize the grid.” Artealia Gilliard, Chief Communications Officer for American Clean Power, highlighted the economic impact: “The $1.4 billion investment is making Michigan a top state for grid-scale battery manufacturing, driving growth here and nationwide.” Jaehong Park and Tristan Doherty forecasted billions in annual economic benefits, emphasizing the plant’s transformative potential.

Overview of the huge LG energy manufacturing plant in Holland, Michigan.

LG Energy Solution has been in Michigan since 2012, initially focusing on EV batteries, but as I’ve observed, the market has shifted. With EV demand growth waning, the pivot to ESS aligns with growing needs for grid stability and renewable energy integration, a move I believe is timely and strategic.

I observed the manufacturing process — starting with a mixing room creating slurry, coating foil, stacking 40 mono-cells with safety-reinforced separators, sealing in aluminum pouches, and injecting electrolyte. This process, now operational on two lines, with a third expected by year-end, underscores the plant’s scale and innovation.

I wasn’t allowed to take pictures, but they provided the following pictures of what I saw.

This is one of the machines making the material (for the anode I think). They need to do a lot of quality control on this material or the batteries won’t work the way they should.

This is where they store the rolls of material before they make the batteries.

Here they are manufacturing the batteries, but I can’t remember what this step is.

Transporting the finished cell to another machine to do quality validation.

I spoke with industry leaders, including Bob Lee, who emphasized: “We have a solution where we can provide energy storage in any location where the energy is being produced and where it can be used in an efficient way to optimize the grid,” as reported in Fox 17 Online. Artealia Gilliard noted, “The $1.4 billion investment is making Michigan one of the top three states for grid-scale battery manufacturing, driving growth here and nationwide.” Jaehong Park forecasted $2.5 billion annual revenue, and Tristan Doherty predicted further economic growth, highlighting the plant’s transformative potential.

Artealia Gilliard on the left, Tristan Doherty in the center, and Jaehong Park on the right answered the media’s questions after the line tour and a formal presentation.

Plant Details and Economic Impact

The plant, a $1.4 billion investment announced in 2022, began LFP battery production in May 2025, with a capacity of 16.5 GWh for ESS, boosting total capacity to 21.5 GWh (5 GWh for EVs, 16.5 GWh for ESS). It could employ up to 1,700 people, attracting skilled workers and capital to West Michigan. Jaehong Park noted it could generate $2.5 billion annually, with Tristan Doherty forecasting further growth, making Michigan a clean energy hub and supporting local communities.

In addition to ESS production, the Holland facility will also produce NMC cells and modules for the Ford Mustang Mach-E, having recently onshored this production from LG Energy Solution’s facility on Wroclaw, Poland.

Advancing Clean Energy in the US

LFP batteries are cost-effective for ESS, with high-loading/high-density designs offering the 6000 or more discharge cycles that are needed for a battery that charges by solar daily and discharges when the sun goes down. This allows the battery to be used for up to 20 years, which lets you amortize the cost over that long period instead of replacing the battery every 5 or 10 years with some other technologies. They support the US grid by storing renewable or fossil generated energy, crucial as demand rises, especially for AI data centers. The plant’s role in integrating renewables and enhancing grid resilience is vital, with LG Energy Solution’s safety standards ensuring long-term reliability, aligning with the US ESS market’s expected growth.

Policy Influences and Competitive Dynamics

No article would be complete without a bit of discussion of how Biden’s IRA and Trump’s Big Beautiful Bill might impact things. The IRA’s domestic content adders offer a 10% bonus credit for sections 45 and 45Y, and up to 10 percentage points for section 48, likely influencing the investment. However, the Big Beautiful Bill (although constantly changing until passed and signed by the president) likely scales back IRA credits, potentially affecting future projects. Tariffs on Chinese ESS batteries, rising to 38.4% by 2026, also drive domestic production.

LG executives seemed confident that their team was well positioned to react quickly to any changes passed by Congress. For example, if it places more restrictions on getting components from China, that might require LG Energy Solution to source them from other global sources, and tariffs would likely encourage them to move production to the US. They seemed confident that they were prepared to do that in two steps as quickly as anyone else since they already have global supply chains and significant highly trained people and plants in the US.

Conclusion

The back of my head at the question & answer session for media.

I enjoyed my short trip and came away very impressed with LG Energy’s ability to execute and change directions quickly as demand, tariffs, and tax policy change with the political winds.