Tesla (NASDAQ:TSLA) and LG Energy Solution (KS:373220) are moving forward with a joint investment of $4.3 billion to construct a battery manufacturing complex in Lansing, Michigan, the companies and U.S. officials said in a government announcement. The new facility will focus on producing lithium iron phosphate (LFP) prismatic battery cells, with output scheduled to begin in 2027.
The statement identified the Lansing plant as a domestic source of cells intended to supply Tesla's Megapack 3 energy storage systems, which are manufactured in Houston. Officials framed the project as an expansion of the existing partnership between Tesla and LG Energy Solution, aimed at strengthening U.S.-based battery production capacity and reducing dependence on overseas supply chains.
Federal officials released the investment details as part of a broader set of energy and infrastructure commitments announced during an Indo-Pacific energy summit. The administration of Donald Trump supported the summit and the related deals, which were described by officials as efforts to secure critical minerals and clean energy technologies while encouraging job creation and industrial growth within the United States.
The Lansing project will produce LFP prismatic cells specifically for integration into Tesla's Megapack 3 systems. Production is planned to start in 2027, according to the announcement, and the move was presented as a strategic step to boost domestic manufacturing of energy storage components.
Company representatives and officials characterized the investment as a continuation of the Tesla-LG Energy Solution collaboration, with a focus on scaling U.S. capacity for battery cells used in large-format energy storage. The announcement ties the investment to wider policy goals highlighted at the Indo-Pacific energy summit, including securing supply chains for clean energy technologies and supporting industrial expansion at home.
Contextual note: The information in this report is based on the details provided in the U.S. government announcement and company disclosures cited in that statement. Where the announcement is limited in scope, this article reflects those limits rather than introducing additional facts.