Hithium, LG begin US battery manufacture in tough American market

While leaders in Europe and the United States are doubling down on a policy of establishing local manufacturing supply chains, the founder of Chinese energy storage company Hithium opened his company’s new fab in Texas by declaring, “true resilience comes from global reach.”

The Xiamen-based battery maker last week held a ribbon cutting ceremony for its near-$200 million factory in Mesquite, and with Korean electronics brand LG this week confirming it has started mass production of lithium iron-phosphate (LFP) batteries in Michigan, the contrast with the struggles of two American battery makers is notable.

With Hithium’s Texan fab set to start manufacturing 10 GWh of battery modules and systems per annum by the end of the year, news has emerged of the struggles two Oregon-based energy storage companies are facing.

Lithium-ion battery manufacturer Powin has informed local and state officials it may have to lay off nearly 250 employees, including senior executives, if business conditions do not improve; and iron-flow battery maker ESS, Inc. recently only managed to stave off closure of its Wilsonville manufacturing site after an eleventh-hour funding injection from an unnamed source.

As Hithium celebrated its new United States facility, David Kim, chief executive and president of LG Energy Solution, on Wednesday used his LinkedIn social media account to confirm mass production had started at his company’s new factory in the city of Holland, Michigan.

‘A US first’

Describing the LG fab as the United States’ first factory for the production of LFP batteries for stationary energy storage use, Kim wrote, “These ESS [energy storage system]-specific LFP batteries, the first to be mass produced in North America, feature a long-cell, pouch-type design that delivers exceptional energy efficiency and safety while maintaining a highly competitive cost structure.”

While US President Donald Trump continues to ramp up the rhetoric against China and its manufacturers – amid an unpredictable tariff assault on imports – foreign manufacturers Hithium and LG are forging ahead with US production plans as the president’s stated desire to protect American companies does not appear to extend to the renewable energy or energy storage industries.

With the Electric Reliability Council of Texas and California Independent System Operator grids rapidly deploying utility-scale batteries in anticipation of artificial intelligence-backed data centers supercharging grid power demand, international battery manufacturers are set to fire up operations even as American rivals like Powin and ESS struggle to survive.

Hithium said its 484,000 sq ft Mesquite site will create almost 200 jobs and company officials quoted in the Hithium press release announcing the ribbon cutting appeared keen to stress the importance of using established, big suppliers – no matter where their headquarters are based.

Reporting a panel discussion about localization, in the Hithium press release, James Boswell, the company’s vice president of North America operations, said, “Our supply chain strategy is a testament to long-term planning. Hithium is delivering solutions that balance local responsiveness with global scalability.”

Hithium founder and chairman Jeff Wu added, “Texas marks a significant step in Hithium’s global strategy – we are creating an interconnected supply network that powers the worldwide energy transition. True resilience comes from global reach and we are building the infrastructure to lead it.”