en.Wedoany.com Report on Mar 28th, EnerSys is advancing the restructuring of its manufacturing facilities, moving lead-acid battery production from Mexico to the United States to expand its proprietary battery technology and meet data center demand. As part of a $37 million restructuring plan, the company will close its plant in Tijuana, Mexico, and shift its focus to its Thin Plate Pure Lead (TPPL) facility in Springfield, Missouri.

TPPL is EnerSys's proprietary lead-acid chemistry technology, specifically designed for UPS systems. Its DataSafe HX series utilizes grids made of nearly pure lead, rather than traditional alloys, which results in thinner battery plates, higher power density, and a longer lifespan than standard Valve-Regulated Lead-Acid (VRLA) batteries. TPPL is also used in applications like forklifts, but the company specifically positions it for data center UPS applications, where short-duration, high-rate discharge performance is more critical than energy capacity.

Shawn O'Connell, President and CEO of EnerSys, stated that this move will "optimize our cost structure, maximize near-term advanced manufacturing production tax credits, and mitigate future risks associated with potential tariffs, while reinforcing our commitment to enhancing domestic industrial capacity and supply chain resilience."

He added that these actions are "based on our investments to expand the TPPL platform, enabling us to better serve our data center customers with solutions offering higher power density and robust performance to meet the increasingly demanding application requirements of today."

As a company listed on the New York Stock Exchange, EnerSys provided financial restructuring details. The move is expected to yield approximately $20 million in annual pre-tax benefits starting in fiscal year 2028. Of the $37 million in charges, $14 million is non-cash for equipment write-offs, while $23 million is allocated for severance, facility decommissioning, and site cleanup.