March 30, 2026: EnerSys is closing its lead acid manufacturing plant in Tijuana, Mexico, in the firm’s latest move to focus on production in the US and — avoid the potential impact of import tariffs.
EnerSys announced the closure on March 25 — a year after the company said it was closing its flooded lead acid plant in Monterrey, Mexico.
The majority of Tijuana’s production will be switched to the battery maker’s Springfield TPPL plant in Missouri, which EnerSys said will boost operational efficiency.
Shutting down the 152,000ft2 Tijuana plant is expected to incur a pre-tax charge of around $37 million. Most of that is expected to be incurred by the second half of fiscal 2027, of which $14 million is expected to be a non-cash charge primarily from equipment write-offs.
Cash charges of $23 million will include severance, decommissioning and cleanup costs.
The restructuring is expected to deliver an annual estimated pre-tax benefit of about $20 million, starting in fiscal year 2028.
President and CEO Shawn O’Connell said the closure will allow the firm to maximize near-term advanced manufacturing production tax benefits, mitigate future risks associated with potential tariffs and reinforce the firm’s commitment to strengthening domestic industrial capacity and supply chain resilience.
“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.”
Batteries International reported last year that EnerSys was cutting 575 non-production jobs as part of a restructuring plan aimed at securing $80 million in annualized savings. The cuts represent 11% of the US-based battery manufacturing giant’s non-production global workforce.
Earlier this year, the company launched a new line-up of TPPL batteries designed for high-rate UPS applications in data centers and critical power systems.
