READING, PA — EnerSys (NYSE: ENS) said it will close its lead-acid battery manufacturing facility in Tijuana, Mexico, and shift most production to its Springfield, Missouri, plant as part of a manufacturing realignment aimed at improving efficiency.
The company said the move will consolidate production at its U.S.-based Thin Plate Pure Lead facility, where it has invested to expand capacity within its domestic manufacturing network.
EnerSys expects to incur a pre-tax charge of about $37 million related to the restructuring, with most costs anticipated by the second half of fiscal year 2027.
The total includes approximately $14 million in non-cash charges, primarily tied to equipment write-offs, and $23 million in cash costs for severance, decommissioning and cleanup.
The company said the changes are expected to generate an estimated $20 million in annual pre-tax savings beginning in fiscal year 2028.
Chief Executive Officer Shawn O’Connell said the transition is intended to reduce costs and support domestic production.
“The closure of our Tijuana facility and the transition of production to Springfield, Missouri will enable us to optimize our cost structure … and mitigate future risks associated with potential tariffs,” O’Connell said.
EnerSys said its Thin Plate Pure Lead battery technology is designed to provide higher power output and shorter discharge performance compared with traditional lead-acid batteries, particularly for applications such as data centers.
The company said it will maintain product availability and work with employees and customers to manage the transition.
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