Holland Reporter

Sawyer Merritt, co-founder of Twin Birch, announced on X that LG Energy has commenced production at a $1.4 billion facility in Michigan. This marks the first large-scale U.S. lithium iron phosphate (LFP) battery plant dedicated exclusively to energy storage systems.

"LG Energy has officially started production at its new $1.4 billion LFP battery cell manufacturing facility in Michigan," said Merritt. "the first ever LFP battery plant in the U.S. dedicated solely for energy storage systems (ESS) at scale. A third manufacturing line should be running by the end of the year. the plant will eventually have an annual production capacity of 16.5 GWh of battery components for energy storage systems (ESS)"

According to the Korea JoongAng Daily, LG Energy Solution has transformed part of its Michigan campus in Holland into a large-scale facility for mass-producing LFP battery cells specifically for energy storage systems (ESS), rather than electric vehicles. Following a $1.4 billion investment, the facility began mass production in May 2025. The company is shifting focus to ESS batteries amid slowing demand for electric vehicles and increased competition from Chinese manufacturers. LGES is currently the only major global battery company producing ESS-dedicated LFP cells at a commercial scale in North America, ahead of competitors such as CATL, BYD, Panasonic, Samsung SDI, and SK On.

Solar Power World reported that LG Energy Solution’s plant in Holland operates two production lines for LFP battery cells intended for ESS and plans to add a third by the end of 2025. The total planned capacity is 16.5 GWh annually, making LGES the largest domestic producer of lithium iron phosphate cells for grid-scale storage applications in the United States. This capacity supports critical infrastructure sectors, including utilities and large-scale renewable energy projects.

U.S. battery storage capacity expanded more than fivefold from 2021 to 2024, surpassing 26 GW as utilities rapidly deployed grid-scale lithium-ion battery systems primarily using LFP chemistry to enhance flexibility and reliability. In 2024 alone, new large-scale battery installations reached 24 GWh—a 71% increase over the previous year—with California leading installations followed by Texas, Arizona, and Nevada. Vox reports that while most batteries are still imported, domestic manufacturing efforts like LGES’s new Michigan plant are gradually reducing U.S. dependence on foreign suppliers.

Sawyer Merritt is recognized as a technology and energy reporter and independent analyst known for his social media coverage of electric vehicle and battery industry news. He frequently shares developments related to battery cell manufacturing, EV startups, and supply chain trends on his X account (formerly Twitter), where his updates are widely followed by industry observers.