US government confirms Tesla and LG Energy Solution’s $4.3 billion battery deal

The U.S. government on Monday said electric vehicle maker Tesla and South Korea’s LG Energy Solution had signed a supply agreement to build a $4.3 billion lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan, with an expected productionlaunch in 2027.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain,” the U.S. Department of the Interior said in a statement on Monday.
The agreement was part of a broader statement on deals highlighted by President Donald Trump’s administration from the Indo-Pacific Energy Security Summit.
A source told Reuters in July that LG Energy Solution had signed a $4.3 billion deal to supply Tesla with energy storage system batteries as the U.S. company looked to reduce its reliance on Chinese imports due to tariffs.