Overview
- The Interior Department identified Tesla as the buyer in LG Energy Solution’s July deal and outlined a Lansing, Michigan prismatic LFP cell factory slated to begin production in 2027.
- Cells from the plant are designated for Tesla’s Megapack 3 systems assembled in Houston, supporting a shift away from Chinese LFP supply and building a U.S.-based battery pipeline.
- The agreement covers Aug. 1, 2027 through July 31, 2030, with options to extend the term and raise volumes.
- LG Energy Solution fully controls the former Ultium site in Lansing after buying GM’s stake in 2025, with reported capacity around 50 GWh per year repurposed for energy storage.
- Market reaction followed the confirmation, with LG Energy Solution shares up about 4% and Tesla shares down roughly 0.4%.