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US government confirms Tesla and LG Energy Solution's $4.3 billion battery deal
The U.S. government has confirmed a $4.3 billion supply agreement between Tesla and South Korea’s LG Energy Solution to build a lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan. This facility is expected to launch production in 2027 and will supply cells for Tesla’s Megapack 3 energy storage systems, aiming to create a domestic battery supply chain and reduce reliance on Chinese imports. This agreement was highlighted as part of a broader statement on deals from the Indo-Pacific Energy Security Summit.