The U.S. government has confirmed a $4.3 billion deal between Tesla and South Korea’s LG Energy Solution to construct a lithium iron phosphate (LFP) prismatic battery cell manufacturing plant in Lansing, Michigan, with operations expected to begin in 2027.
The facility will produce cells for Tesla’s Megapack 3 energy storage systems, manufactured in Houston, reinforcing a domestic battery supply chain.
This move marks a strategic shift away from reliance on Chinese battery imports amid rising tariffs. LG Energy Solution is one of the few LFP producers operating in the U.S., where Chinese firms have long dominated the market.