The U.S. Dept. of the Interior reported a plan by Tesla Motors and LG Energy Solution to operate a lithium-iron phosphate (LFP) prismatic battery cell manufacturing plant in Lansing, Mich., starting next year. The project was among a $56-million series of private-sector investments announced during the Indo-Pacific Energy Security Ministerial and Business Forum in Japan.
The battery cells will be destined for plant producing energy storage systems that Tesla is ramping up now. Tesla also relies on LFP batteries to power its standard range Model 3 and Model Y vehicles.
LG Energy Solution will continue as the sole owner of the Michigan plant, though Tesla reportedly has agreed to a $4.3-billion supply agreement for the LFP cells.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain,” according to a U.S. Department of the Interior statement.
Tesla’s Megapack 3 is a utility-scale lithium-iron phosphate battery system designed for grid stabilization, capable of storing 5 MWh of energy in a 28-foot container. Currently the system is powered by LFP batteries sourced from manufacturers that include CATL and BYD, both located in China.
The Houston plant is approaching start-up later this year to manufacture utility-scale Megapack batteries that aim to support
Lansing was to be the site of a third plant for EV lithium-ion battery cells planned by the General Motors and LG Energy Solutions joint venture, Ultium Cells LLC. In 2025, GM sold its interest in the plant to LG when it shifted its EV battery strategy to include prismatic cell technology, again in partnership with LG. Subsequently, LG redesigned the Lansing plant to manufacture lithium-iron phosphate (LFP) prismatic cells, compatible with Tesla vehicles.
