Tesla partners with LG on Michigan battery facility
Tesla and South Korea’s LG Energy Solution have signed a supply agreement to build a $4.3 billion lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan, with production expected to begin in 2027, the U.S. government said Monday.
According to the U.S. Department of the Interior, the domestically produced battery cells will be used to power Tesla’s Megapack 3 energy storage systems manufactured in Houston, supporting efforts to strengthen the U.S. battery supply chain, News.Az reports, citing foreign media.
The agreement was highlighted as part of a broader set of deals announced during the Indo-Pacific Energy Security Summit under President Donald Trump’s administration. The partnership reflects a strategic push to expand U.S.-based battery production and reduce reliance on foreign supply.
A source previously told Reuters that LG Energy Solution had signed a $4.3 billion deal to supply Tesla with batteries for energy storage systems, as the automaker seeks to lessen its dependence on Chinese imports amid tariffs. At the time, LG Energy Solution said it had entered into a $4.3 billion contract to supply LFP batteries globally over three years, but did not identify the customer or specify end use.
LG Energy Solution is one of the few producers of LFP batteries in the United States. The battery chemistry has long been dominated by Chinese competitors, which have had limited presence in the U.S. market.
News.Az
By Nijat Babayev
