The U.S. government confirmed Tesla as the customer for a $4.3 billion supply agreement with LG Energy Solution. LG originally announced the deal in July without naming the partner.
The South Korean manufacturer will supply lithium iron phosphate (LFP) prismatic cells for Tesla’s Megapack energy storage systems. Production will occur at a new manufacturing facility in Lansing, Michigan.
Manufacturing is expected to begin in 2027. The partnership aims to establish a domestic battery supply chain and reduce reliance on foreign imports.