Projects Under Construction Lead U.S. to $45 Billion Worth of Battery-Manufacturing Investments

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking $63 billion worth of active and proposed battery-manufacturing projects across the U.S., with $45 billion of the spend attributed to projects under construction. Some manufacturing is shifting away from supporting fully battery-powered EVs and toward energy-storage batteries.

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U.S. Battery Manufacturing Shifts from EVs to Energy Storage

According to Industrial Info Resources data, there are $63 billion worth of active and planned battery-manufacturing projects across the U.S., with $45 billion of the spend attributed to projects under construction. Some manufacturing is shifting away from supporting fully battery-powered electric vehicles (EVs) and toward energy-storage batteries.

Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database can view a detailed list of project reports.

Rollbacks on energy transition funding--including the expiration of the federal $7,500 consumer EV tax credit--and slower-than-expected market adoption--are leading domestic automakers to shift production from full EVs, leaving some U.S. battery-manufacturing capacity underutilized.

Battery-energy storage system (BESS) units have mainly been used in the U.S. to store energy to supply power when solar is not generating. Increasingly, data centers are using them to reduce reliance on diesel backup during grid outages.

Ford and GM Pivot to Energy-Storage Batteries

Ford and General Motors are shifting some EV battery manufacturing capacity to support energy storage.

Ford earlier this year announced its newly formed Ford Energy unit, which is focused on producing batteries for utility-scale power grids, residential power supplies and data centers.

The automaker is investing around $2 billion to convert a former EV battery plant in Glendale, Kentucky, to produce commercial BESS units for power generation and data center backup. The project is designed with an annual capacity of at least 20 gigawatt-hours (GWh) per year, aiming for first production in 2027. Another Ford plant under construction in Marshall, Michigan, is expected to open this year and will manufacture smaller, residential battery units. Both plants will manufacture lithium-iron-phosphate (LFP) batteries, which do not employ nickel or cobalt, lowering costs. The IIR database has related project reports and plant profiles.

For more information, see January 29, 2026, article - Ford Picks Leader for New BESS-Manufacturing Unit.

Meanwhile, GM and joint-venture project partner Samsung SDI, a unit of Samsung, are building a $3.5 billion battery plant in Indiana. In addition to producing EV batteries, some capacity will pivot toward LFP batteries for energy storage. Construction is expected to wrap up by the end of 2027. Subscribers can click here for the project report.

Another GM joint venture ("Ultium Cells"), with LG Energy Solution (LGES), is retooling its plant in Spring Hill, Tennessee, to shift production from EV battery cells to LFP cells for energy storage. Construction could wrap up by the end of the year. See more information in a detailed project report.

LG, Panasonic Support Tesla

GM previously sold its stake in a EV battery plant in Lansing, Michigan to then-joint-venture partner LGES. Now the sole owner, LGES earlier this year signed a deal with Tesla to provide $4.3 billion worth of LFP battery cells from the plant for the latter's energy storage systems.

As a result, LGES is exploring a multi-billion-dollar retooling of the plant, which would entail adding production lines to supply Tesla. View the project report here.

Another project aimed at supporting Tesla is underway, but not for energy storage: Panasonic's $4 billion expansion of its plant De Soto, Kansas, just outside Kansas City, will increase production of battery cells for Tesla EVs. Full production could begin in 2027. Subscribers can view more project information.

Toyota Boosting Hybrid Automotive Battery Production

Toyota is at work boosting production capacity at its only battery plant outside of Japan, in Liberty, North Carolina, which produces batteries for hybrid, plug-in hybrid and electric models. A new building with two production lines will ramp up output, while another eight new lines will add new capacity for plug-in hybrid vehicles. Read more information on the expansion and equipment-addition projects, both of which could wrap up by the end of 2027.

Key Takeaways

• Industrial Info Resources is tracking $63 billion worth of active and proposed battery-manufacturing projects across the U.S., with $45 billion of the spend attributed to projects under construction.
• Ford and GM are investing in shifting from EV battery production to energy storage.
• LG and Panasonic are investing to support Tesla's EVs and energy storage systems.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).