US government confirms Tesla and LGES’s $4.3B battery deal
The plant was formerly developed for a joint venture between LG and General Motors before the automaker sold its stake to LG. The facility is expected to be launched in 2027.
Tesla and South Korea’s LG Energy Solution (LGES) have signed a supply agreement to build a USD 4.3 billion lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan, the US government has confirmed.
The facility is expected to be launched in 2027, according to a Reuters report.
The plant was formerly developed for a joint venture between LG and General Motors before the automaker sold its stake to LG.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain,” the US Department of the Interior said.
Though LG Energy Solution said last year that it had signed a USD 4.3 billion contract to supply LFP batteries over three years, it had not identified the customer.
Tesla sells Powerwall backup batteries for residential use with its solar installations, and Megapack and Megablock systems for utility-scale power storage, according to a CNBC report.
The US company is believed to be exploring ways to reduce its reliance on Chinese imports.
