US Confirms Tesla–LG Energy Solution’s $4.3 Billion LFP Battery Plant in Michigan

The Michigan factory’s output will feed Tesla’s Megapack 3 systems, large integrated batteries designed to store electricity and stabilize power grids.

A Tesla Model Y is displayed at the AI+Expo Special Competitive Studies Project in Washington on June 2, 2025. Madalina Vasiliu/The Epoch Times

The U.S. government has confirmed that Tesla and South Korea’s LG Energy Solution have signed a supply agreement to build a $4.3 billion lithium iron phosphate (LFP) battery cell factory in Michigan.

The project, to be located in Lansing, is expected to begin production in 2027, according to a March 16 statement by the U.S. Department of the Interior.