Reading-based EnerSys, a stored energy solutions company focused on industrial applications, recently announced it will close its lead-acid battery manufacturing facility in Tijuana, Mexico, and transition the majority of production to its existing Thin Plate Pure Lead (TPPL) plant in Springfield, Mo.
The closure is part of a strategic manufacturing realignment designed to enhance operational efficiency and will expand capacity within its U.S. manufacturing network.
“The closure of our Tijuana facility and the transition of production to Springfield, Mo., will enable us to optimize our cost structure, maximize near-term advanced manufacturing production tax benefits, and mitigate future risks associated with potential tariffs while reinforcing our commitment to strengthening domestic industrial capacity and supply chain resilience,” Shawn O’Connell, EnerSys president and CEO, said. “These actions build on the investments we have made to scale our TPPL platform and enable us to better serve data center customers with solutions that deliver higher power density and strong performance for today’s increasingly demanding applications.”
The company will spend $23 million on severance pay, decommissioning the facility and related cleanup. It will work with employees, customers, and other stakeholders to ensure a seamless shift in production and supply chain logistics.
EnerSys designs, manufactures, and distributes motive power batteries, specialty batteries, battery chargers, and equipment.