LANSING, Mich. (WLNS) — Electric vehicle maker Tesla has signed a $4.3 billion agreement to purchase lithium iron phosphate (LFP) prismatic batteries from South Korea’s LG Energy Solution at a facility in Lansing, the U.S. Department of the Interior announced on Monday. Production is expected to launch 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 department said in a news release.
The agreement was announced as part of several deals made by President Donald Trump, and 6 News confirmed the order with a City of Lansing spokesperson.
The facility was initially announced in 2022 as a joint venture between General Motors Co. and LG, to be an Ultium Cells plant, but GM sold its stake in May 2025. Late last year, LG retooled the facility to build LFP prismatic cells. LG disclosed in July 2025 that it signed a $4.3 billion deal but did not name the customer publicly, and on Monday, March 16, 2026, the U.S. government confirmed that Tesla is the buyer behind the facility.
Last year, Ford Motor Co. built a $3 billion LFP factory in Marshall, Michigan, with China’s Contemporary Amperex Technology Co. Ltd. (CATL), with production slated to begin this year.
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