EnerSys has closed its lead‑acid battery manufacturing facility in Tijuana, Mexico, and will transfer the majority of production to its proprietary Thin Plate Pure Lead (TPPL) plant in Springfield, Missouri. The move is part of a broader effort to streamline operations and focus on higher‑margin battery technology.
The company will record a one‑time $37 million charge related to the plant shutdown, but expects a $20 million annual pre‑tax benefit once the transition is complete. The charge reflects costs associated with decommissioning the Tijuana site and relocating equipment, while the benefit comes from reduced overhead, lower logistics costs, and the ability to scale the more efficient TPPL platform.
EnerSys cited operational efficiencies and cost savings as the primary drivers for the closure. Consolidating production in Missouri allows the company to leverage its advanced TPPL technology, reduce transportation expenses, and achieve greater manufacturing scale. The shift also positions EnerSys to better serve U.S. customers with faster delivery times and a stronger product portfolio.
The announcement is part of a broader restructuring strategy that includes workforce reductions and capital allocation initiatives. While specific employee numbers are not disclosed, the company has indicated that the plant shutdown will be accompanied by support for displaced workers and a focus on maintaining productivity in its remaining facilities.
This is the first major facility change announced in the current quarter, underscoring EnerSys’s commitment to improving margins and supporting its long‑term growth plan. The consolidation is expected to strengthen the company’s competitive position in the battery market and provide a foundation for future expansion of its high‑margin TPPL technology.
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