April 3, 2025: EnerSys is to close its flooded lead acid battery manufacturing facility in Monterrey, Mexico and switch production to its existing Kentucky plant while expanding capacity in the US and Europe.

The lead and lithium major said on April 1 that the move will boost production of its battery technologies including Thin Plate Pure Lead and lithium ion.

The announcement came just hours before US president Donald Trump was set to unveil a raft of reciprocal tariffs on countries that impose duties on US goods.

EnerSys said it expects to incur a pre-tax charge of around $20 million on completion of the switch, the majority of which is expected to be recorded in the first half of calendar year 2025, of which $7.6 million is expected to be a non-cash charge from inventory and equipment write-offs.

Cash charges of $12.4 million include severance, decommissioning and cleanup related to the Mexico facility, contractual releases and legal expenses. 

Meanwhile, EnerSys will invest $4.5 million to expand flooded lead battery production capacity in its Bielsko-Biala, Poland facility.

The restructuring is expected to deliver an estimated pre-tax benefit of $19 million annually, beginning fiscal year 2027, while ensuring continued product availability and customer support, the company said.

COO Shawn O’Connell, who will become CEO in May, said: “The closure of our Monterrey facility and the transition of production to Richmond will enable us to optimize our cost structure, maximize near-term IRC 45X tax benefits, and mitigate future risks associated with potential tariffs while reinforcing our commitment to strengthen domestic industrial security.”

O’Connell said the move is also a testament to the success of its “maintenance-free conversion journey”, which continues to strengthen the firm’s position as the market shifts toward higher performance, lower maintenance energy solutions.