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. 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. LG Energy Solution is one of the few producers of LFP batteries in the U.S. The LFP battery chemistry has long been dominated by Chinese rivals that have little presence in the U.S. market.

Source: The Telegraph March 17, 2026 05:40 UTC