EnerSys is to close its lead-acid battery manufacturing facility in Tijuana, Mexico, as part of a broader restructuring that will see production transferred to its plant in Springfield, Missouri.
The move is aimed at consolidating manufacturing within the company’s US footprint and expanding capacity for its Thin Plate Pure Lead (TPPL) technology, which offers higher power density and improved discharge performance compared with conventional valve-regulated lead-acid batteries.
EnerSys said the transition would support growing demand from applications such as data centre backup systems, where high-rate discharge and reliability are critical.
EnerSys counts the cost of tariffs
The restructuring is expected to incur pre-tax charges of around $37 million, including equipment write-offs and costs related to severance and site decommissioning. However, the company forecasts annual pre-tax savings of approximately $20 million from fiscal 2028 as a result of improved efficiency and lower operational complexity.
Chief executive officer, Shawn O’Connell said: “The closure of our Tijuana facility and the transition of production to Springield, Missouri will enable us to optimise our cost structure … and mitigate future risks associated with potential tariffs.”
Caption: Tijuana is situated on the border with California Credit: Shutterstock
