Archive · 20 Aug 2026
LG Energy Shifts From EV Batteries Toward Energy Storage
LG Energy Solution used to focus mostly on batteries for electric cars.
Now it is making more batteries that store electricity for later use.
This change is happening because many new AI data centers need large amounts of stored power.
Five of the company’s eight North American factories are expected to make these storage batteries by the end of the year.
LG’s Michigan factory plans to make batteries for Tesla and Toyota Motor as well as utilities.
To make storage batteries, LG has had to learn more about a different battery type called lithium iron phosphate, or LFP.
LFP batteries do not store as much energy as some EV batteries, but they are considered safer and more durable.
LG is still making EV batteries, although demand for electric vehicles has not grown as much as companies expected.
LG Energy Solution says five of its eight North American factories will make energy-storage batteries by the end of this year.
The company is responding to booming demand for large batteries used to store electricity for AI data centers.
LG Energy’s Lansing, Michigan, plant makes cells for utilities and plans to produce cells for Tesla and Toyota Motor.
The shift requires LG Energy to develop lithium iron phosphate batteries, a chemistry dominated by Chinese manufacturers.
LG continues producing nickel-based EV batteries, including at its General Motors joint venture in Ohio, which recently restarted after a seven-month shutdown.
- Who
- LG Energy Solution, with customers and partners including Tesla, Toyota Motor, General Motors, and utilities.
- What
- LG Energy Solution is shifting much of its North American battery production toward energy-storage systems while continuing to make EV batteries.
- When
- The change was reported on August 19; LG says five North American factories will make energy-storage batteries by the end of this year.
- Where
- The shift involves LG Energy Solution’s North American factories, including its plant in Lansing, Michigan, and its joint venture in northeast Ohio.
- Why
- Demand for electricity storage is rising, particularly because of AI data-center construction, while the expected EV boom has not materialized.
- North American factories
- Five of LG Energy Solution’s eight regional factories are expected to make energy-storage batteries by the end of this year.
- Lansing facility
- The Michigan plant makes cells for utilities and plans to make cells for Tesla and Toyota Motor.
- New chemistry
- LG is developing lithium iron phosphate, or LFP, batteries for energy-storage systems.
- LFP characteristics
- LFP batteries have lower energy density than nickel-based batteries but are considered safer and more durable.
- Storage demand
- Benchmark Mineral Intelligence expects North American stationary-battery demand to reach 76 gigawatt-hours this year and 125 GWh in five years.
- General Motors production
- LG’s joint-venture plant in northeast Ohio restarted production of GM EV cells after a seven-month shutdown.
- Remaining capacity
- Benchmark does not expect stationary-battery demand to fully absorb excess factory capacity installed for EV batteries.